By Marty Swant

Think the generative AI boom is bound to bust? A new report from the International Data Corporation says it’s time to buckle up.

Last week, the market intelligence firm released a new forecast predicting that generative AI investments will rise from $16 billion this year to a staggering $143 billion in 2027. While generative AI accounts for just 9% of overall AI spending in 2023, the firm expects that will increase to 28% within five years. IDC also noted generative AI’s growth rate is more double the growth rate of overall AI spending, and growing at a compound annual rate nearly 13 times higher than worldwide IT spending in the same time frame.

“When it comes to looking at AI strategy or even a data strategy in general, I think of generative AI kind of like this iceberg,” said Khendr’a Reid, a principal data strategy technical specialist at Amazon Web Services. “You see the tip is to generate AI, but it’s everything underneath it.” (Reid said this during one of the dozens of AI-related talks at Advertising Week in New York last week.)

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Source:: Digiday

Author: Aaron