AI services to become trillion-dollar industry by 2027
The market for AI-related products and services is expected to grow by up to 50% annually and reach a value of between $780 billion and $990 billion by 2027 – according to new research by consultancy Bain & Company.
The fifth annual Global Technology Report offers insight into the new phase of growth in the technology sector due to the rapid succession of developments in AI.
“Companies are past the pilot phase and beginning to scale generative AI,” said David Crawford who helmed the report. The larger the organisation, the more they are investing in AI applications.
The increase in investment in AI infrastructure, now tens of billions of dollars annually, also ensures that new, faster applications continue to emerge. The report said: “Today’s large cloud providers are the largest concentration of R&D, talent and innovation, pushing the boundaries of large models and advanced infrastructure.”
Innovation in software was said to come from two sides: “Innovation with smaller models, edge infrastructure and commercial software reaches companies, governments and research institutions” on one side. And on the other side from established vendors expanding their portfolios: “Commercial software vendors are rapidly expanding their features to provide the best applications and make best use of their data assets.”
Also notable was the emergence of ‘sovereign AI power blocks’ as governments plough billions into subsidising domestic computing infrastructure and AI models.
India, Japan, France, Canada and the United Arab Emirates were pecifically mentioned for spending billions of dollars to subsidise AI.
The researchers wenton to explain what they think could cause the next wave of innovation in the tech world. “AI and protecting national security are two accelerators of disruption. In addition, having to compulsorily break up tech companies,” Google, for example, “may lead to new sources of disruption.”
The report concluded with some short advice for businesses: “Invest in innovation and do smart M&A.”
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