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AI Services Spending to Rise at 22% CAGR Through 2026: IDC

Global revenue from AI software, hardware and services is forecast to grow 19.6% year over year in 2022 to $432.8 billion, topping the $500 billion milestone in 2023, reported IDC Tuesday. AI is "the next major wave of innovation,” with…

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advancements in language, voice and vision technologies “revolutionizing human efficiencies," said IDC analyst Ritu Jyoti. IDC projects AI software revenue will decline slightly in 2022, as spending for AI hardware and services grows more quickly. It forecast AI services will deliver the fastest spending expansion over the next five years with a 22% compound annual growth rate, compared with a 20.5% CAGR for AI hardware spending through 2026.