Where is AI booming?
This detailed report offers a lot of good news for AI boosters. It estimates that AI spending in 2025 will be $13.8 billion, more than six times the $2.3 billion spent in 2023. The report says, “There are clear signs that companies are moving from experimentation to execution and embedding AI at the core of their business strategies…” [Seventy-two percent] decision makers expect widespread adoption of generative AI tools in the near future. ”
The report argues that it’s not just the amount of money that shows genAI is starting to boom, but the way it’s being used. This boom has been driven by chatbots such as Microsoft’s Copilot, the brain behind Copilot, and OpenAI’s ChatGPT. But now, the report says, AI in enterprises is “increasingly distributed across solutions in departments ranging from coding, sales, customer support, human resources, healthcare and legal to the creator economy.”
Just as important, companies have dramatically changed the way they develop and deploy AI. They buy tools from AI companies rather than building their own tools in-house. The report states that in 2024, 53% of AI solutions will be purchased rather than built in-house, and that number will jump to 76% in 2025. The report states that unlike in-house solutions that are time-consuming and not always profitable, “off-the-shelf AI solutions are reaching production faster and demonstrating value immediately.”
