Banking and retail will invest heavily in AI

The last two difficult years in the business world have accelerated the use of AI. Organizations are now more willing to reap the benefits in terms of efficiency and improved capabilities according to an IDC analysis.

The continued incorporation of AI into a wide range of products will drive a compound annual growth rate (CAGR) of 26.5% over the forecast period 2022-2026. This rate is more than four times the CAGR of 6.3% for global IT spending over the same period. A market with great potential as we detailed in a previous article.

The high and consistent growth seen in the use of AI across industries demonstrates its importance to business. “AI is not the future, it is now,” said Mike Glennon, principal market research analyst on IDC’s Customer Insights & Analysis team.

AI systems can indeed support people-centric tasks and enhance their capabilities through technologies such as conversational AI and image processing, used to interact with customers and potential customers in a way that these people are ready to accept.

Banking and retail: a quarter of investments

“Most IT vendors have adopted AI solutions to complement their products and are enhancing their products to make AI a critical part of their success,” according to IDC.

While many sectors are convinced of this, the analyst firm points out that banking and retail realize have the largest investments in AI during the forecast period. Together, they will account for around a quarter of all AI spending globally.

Professional services will be the second largest sector (average annual growth rate of 28.7%), with more than 10% of spending, followed by discrete manufacturing and processing.

Of the 30 AI use cases identified by IDC, “augmented” customer service agents will be the biggest spenders throughout the forecast period, reaching $35.9 billion in 2026.

Although this is the most important use case in only two sectors (retail and telecommunications), these augmented advisers (including integrating video during technical support) are an investment area for all sectors.

Focus on customers

Other major use cases for AI are recommending and improving sales processes, analyzing and investigating fraud, and program advisors and recommender systems.

By 2026, these four use cases will account for more than 38% of all AI spending globally.

“Three of the top use cases are customer and sales driven, showing that AI adopters are using it to grow their business significantly with a focus on customers and sales at a time when the economy is in trouble,” says Mike Glennon. Because a bad customer experience has a direct impact on the business.

For this specialist, “the use of AI in organizations is moving away from simple cost reduction to become a strong element of business growth, which shows the growing maturity of AI as a IT solution in a wide range of systems. »

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