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Artificial Intelligence: Skyrocketing Growth in Spending by Businesses Anticipated

By Dick Weisinger

Global businesses are on track to spend $85 billion on AI in 2021, based on estimates from IDC.  Pandemic or not, there’s no stopping its growth. IT spending is expected to skyrocket to even more than $200 billion by 2025.

The two largest areas where nearly 20 percent of AI spending is happening now are Automated Customer Service Agents and Sales Process Recommendation and Automation.

Ritu Jyoti, vice president at IDC, said that “disruption through the global pandemic has been unsettling, but it is also serving as a catalyst for innovation, growth, and business transformations. Today, AI expertise is focused more on developing commercial applications that optimize efficiencies in existing industries. Acceleration of AI adoption and proliferation of smart, intuitive ML/DL algorithms will spawn the creation of new industries and business segments and overall will trigger new opportunities for business monetization.”

Mike Glennon, senior research manager at IDC, said that “in addition to the customer experience, a lot of AI investment is geared towards improving efficiency. IDC believes these implementations will migrate towards developing and enhancing new business models. New ways of conducting business will fundamentally change how companies interact with their customers and will encourage new players across many industries. We have already seen dramatic changes in retail with companies such as Alibaba and Amazon, and other industries will follow as they discover how they can benefit from changes in how business is done using AI.  AI will have an impact in all stages of business, from customer interactions, through supply chain improvements, to new and yet to be thought of services.”

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