BrazilGlobal AI market to grow with 19% per year to $1 trillion in 2027
A growing body of research suggests that the market for AI services could be a major accelerant for the economy in the coming years. According to a new forecast from Sopra Steria, the technology’s popularity will see the AI market grow three times faster than the entire IT sector in the next five years.
The study by the IT consulting and services company predicts that the AI market will grow by an average of 19% per year until 2028. This would see the market boom from its current value of $540 billion to $1.27 trillion – lifting the share of AI in the entire IT market from 6% to around 10%.
Growth is expected in almost every field of AI, said Sopra Steria. For example, AI can help to quickly perform complex data analyses, making decision-making faster and more accurate. AI can also help augment traditional forms of automation, such as process automation and robotics, leading to smarter, more streamlined and efficient processes.
Other uses cases include using AI to drive innovation, improve the customer experience, while its little brother generative AI already has all kinds of proven applications in functions such as sales & marketing, customer service, and procurement.
Sopra Steria’s report found that AI is currently most widely used in the financial sector, followed by healthcare and telecom. Together, these three sectors account for 45% of the AI market.
Four segments
In the study, the researchers distinguish four segments within the AI market. The two largest relate to AI tools for processes (for example: AI within process mining) and for people (for example: smart AI assistants). They predict that these segments will grow by 18% and 24% per year respectively until 2028, to a market size of $390 billion and $380 billion.
Meanwhile, the ‘AI for machines’ segment – which includes, for example, AI tools within factories and supply chains – is expected to grow to $330 billion by 2028 (a 13% CAGR) – with the concept of digital twins driving growth in particular.
Finally, there is the ‘AI for software’ segment, expected to triple to $170 billion by 2028 (a 25% CAGR), which involves AI tools that automate and accelerate the development of software products and apps.
Technology and people
In the coming years, companies will make a big leap in the use of AI models. However, this requires more than just the latest AI technology, stated Joost de Bruin, who leads the Sopra Steria business in the Netherlands. “AI is increasingly becoming a critical success factor in business operations, provided that not only is invested in the technology, but also in the necessary skills.”
De Bruin emphasized that organisations should not lose sight of the importance of human labour, noting employees must have the skills to use AI tools in their daily work, and translate AI insights into value for both their role and the organisation.
At the same time, it is important to deal with AI responsibly. Not only because the use of algorithms also has risks, from unintended bias, to ‘hallucinations’ (mistakes or misjudgements by AI models) of AI. But also because the EU’s new AI regulations could see organisations which fail to account for these risks hit with major reprimands. As a result, previous research found that three quarters of managers plan to include responsible AI in their AI development policy for the coming years.
