Security News > 2023 > December > AI software market to hit $307 billion by 2027
The worldwide revenue for AI software will reach $307 billion in 2027, according to IDC. The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software, and AI Application Development and Deployment software.
A recent IDC survey found that, in the next 12 months, roughly a third of respondents believe that organizations will prefer to buy AI software from a vendor or use in-house support alongside vendor-supplied AI software for specific use cases or application areas.
"The momentum behind investments in AI and automation technologies remains unwavering despite economic uncertainty and shifting market dynamics. Businesses are realizing that utilizing cutting-edge technology is not only a strategic necessity but also a crucial factor in achieving long-term success. Despite potential challenges and risks, organizations are confident that adopting AI will continue to be crucial for future proofing their business operations and remaining ahead of the competition," said Raghunandhan Kuppuswamy, research manager, Artificial Intelligence and Automation Research at IDC. AI Applications is currently the largest category of AI software, accounting for roughly one third of the market's overall revenue in 2023.
The two smallest categories - AI Systems Infrastructure Software and AI Application Development and Deployment software - will both grow revenues faster than the overall market with five-year CAGRs of 32.6% and 38.7%, respectively.
The AI SIS category benefits from its integration with existing software systems, allowing organizations to derive valuable insights from vast amounts of data to make informed decisions and optimize operations.
The AI AD&D category includes analytics and business intelligence software, data management, integration and orchestration, application development, software quality and life-cycle software, and application platforms.
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