According to the latest Global Semi-annual Artificial Intelligence System Expenditure Guide, spending on artificial intelligence (AI) systems in the Asia-Pacific region is expected to reach nearly $5.5 billion in 2019, an increase of nearly 80 compared to the 2018 expenditure scale. %. As the industry actively invests in projects that use artificial intelligence software capabilities, IDC expects spending on artificial intelligence systems to increase to $15.06 billion in 2022, with a CAGR of 50% expected from 2018 to 2020.
Swati Chaturvedi, senior market analyst at IDC Asia Pacific, said: "Artificial intelligence is changing the world we are talking about. In fact, the Asia Pacific region is rapidly promoting the adoption of artificial intelligence because it has a fertile new digital ecosystem. Countries are using technology. Progressive development of the economy, the pool of talents of the millennial generation continues to grow, and more and more technology-savvy companies will remain in this highly competitive market."
Regional spending on artificial intelligence systems will be led by the retail industry, which will spend more than 70% of its industry investments on merchandising, expert shopping consulting and referrals, automated customer service agents, and supply and logistics solutions. In the area of artificial intelligence investment, the banking industry will follow closely, with fraud analysis and investigations, project consultants and recommendations, and automated customer agents, etc., will occupy the main part of the expenditure. In the forecast for 2018-2020, the industries with the highest compound annual growth rate of artificial intelligence systems are health care providers (60.2% CAGR) and process manufacturing (60.1% CAGR).
IDC expects artificial intelligence system spending in Asia Pacific to reach nearly $5.5 billion in 2019
The most invested AI use cases this year were automated customer service agents (nearly $700 million), sales process recommendations and automation (over $450 million), and intelligent process automation (over $350 million). The fastest growing will be drug research and discovery as well as digital twin/advanced digital simulation.
As a developing region, the Asia Pacific region will invest in infrastructure that supports artificial intelligence development. Hardware will be the largest area of spending on artificial intelligence systems in 2019, with nearly $7 billion going to be used for servers and storage. Software will be the fastest growing category of regional artificial intelligence spending with a five-year compound annual growth rate of 80%. Companies will also invest in IT services to help develop and implement artificial intelligence systems and business services, such as consulting and horizontal business process outsourcing related to these systems. In the final part of the forecast, IDC expects artificial intelligence-related service spending to be slightly lower than software spending.
Jessie Cai, senior research manager for cognitive computing/artificial intelligence, said: "From the perspective of application development and deployment, artificial intelligence still faces many challenges. Depending on the multi-layer technology stack and many different skill sets, successful implementation needs Organizations strengthen their capabilities in different areas, including data, people, processes, and infrastructure. They are advised to consider the cloud's native infrastructure, review data readiness, and implement data-driven decisions."
In terms of geographical division, China is expected to account for two-thirds of the total expenditure on artificial intelligence systems in the entire Asia-Pacific region (excluding Japan), driven by retail, professional services and government industries. However, the Asia Pacific region (excluding Japan and China) will achieve the fastest growth in artificial intelligence solutions and deployments, driven by banking, retail and manufacturing.