Wednesday, July 31, 2019

China Dominates Asia-Pacific AI Investment

Asia-Pacific spending on artificial intelligence (AI) systems is forecast to reach nearly USD 5.5 billion in 2019, an increase of almost 80 percent in spent in 2018, IDC says, and will be lead by Chinese investment. Most of that investment will happen in China, which will represent nearly 66 percent of the Asia/Pacific excluding Japan (APEJ) regional spending on AI systems. 

However, Asia-Pacific (excluding Japan and China) will show the fastest growth in adoption of AI-enables solutions and deployment, led by banking, retail and manufacturing industries, according to IDC. 

IDC further expects spending on AI systems in Asia-Pacific to reach USD 15.06 billion in 2022 with a compound annual growth rate (CAGR) of 50 percent over the 2018-to-2022 forecast period.

Regional spending on AI systems will be led by the retail industry where retailers will invest more than 70 percent of all AI spending on solutions such supporting merchandising, expert shopping advice and  recommendations, automated customer service agents and supply or logistics. 

The industries that will experience the fastest growth in AI systems spending over the 2018-2022 forecast are healthcare providers (60.2 percent CAGR) and process manufacturing (60.1 percent CAGR).


Banking entities will focus on applying AI to fraud analysis and investigation, program advisors and recommendation as well as automated customer agents.

The AI use cases that will see the most investment in 2019 are automated customer service agents (almost $700 million), sales process recommendation and automation (more than $450 million), and intelligent process automation (more than $350 million), IDC says.

The fastest growth will be seen in pharmaceutical research and discovery and digital twin/advanced digital simulation.

Hardware will be the largest area of AI systems spending in 2019 with nearly USD 7 billion going towards server and storage.

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