Report: AI and Cognitive Systems Spending to Hit $12.5 Billion Worldwide This Year

There has been a lot of buzz lately around artificial intelligence and cognitive computing, with spending for both on pace to hit $12.5 billion in 2017, according to International Data Corp. (IDC).

IDC forecasts double-digit growth over last year in its latest analysis, “Worldwide Semiannual Cognitive/Artificial Intelligence Systems Spending Guide,” released Monday. Worldwide, these segments will increase 59.3 percent and achieve a compound annual growth rate (CAGR) of 54.4 percent through 2020, when global revenues are expected to reach $46 billion.

“Intelligent applications,” including cognitively-enabled process and industry applications that use machine learning techniques, are forecast to make up the largest area of spending in 2017 at $4.5 billion. Cognitive-related IT and business services come in second place at $2.5 billion, followed by cognitive/AI software platforms at $3.5 billion. According to a news release, these “provide the tools and technologies to analyze, organize, access and provide advisory services based on a range of structured and unstructured information.”

"Intelligent applications based on cognitive computing, artificial intelligence and deep learning are the next wave of technology transforming how consumers and enterprises work, learn and play," said David Schubmehl, research director at IDC’s Cognitive Systems and Content Analytics, in the release. "Cognitive/AI systems are quickly becoming a key part of IT infrastructure and all enterprises need to understand and plan for the adoption and use of these technologies in their organizations."

To learn more, view the report on the IDC site.

About the Author

Sri Ravipati is Web producer for THE Journal and Campus Technology. She can be reached at [email protected].

Featured

  • AI robot with cybersecurity symbol on its chest

    Microsoft Adds New Agentic AI Tools to Security Copilot

    Microsoft has announced a major expansion of its AI-powered cybersecurity platform, introducing a suite of autonomous agents to help organizations counter rising threats and manage the growing complexity of cloud and AI security.

  • modern college building with circuit and brain motifs

    Anthropic Launches Claude for Education

    Anthropic has announced a version of its Claude AI assistant tailored for higher education institutions. Claude for Education "gives academic institutions secure, reliable AI access for their entire community," the company said, to enable colleges and universities to develop and implement AI-enabled approaches across teaching, learning, and administration.

  • central cloud platform connected to various AI icons—including a brain, robot, and network nodes

    Linux Foundation to Host Protocol for AI Agent Interoperability

    The Linux Foundation has announced it will host the Agent2Agent (A2A) protocol project, an open standard originally developed by Google to support secure communication and interoperability among AI agents.

  • open laptop in a college classroom with holographic AI icons like a brain and data charts rising from the screen

    4 Ways Universities Are Using Google AI Tools for Learning and Administration

    In a recent blog post, Google shared an array of education customer stories, showcasing ways institutions are using AI tools like Gemini and NotebookLM to transform both learning and administrative tasks.