The AI ​​industry, including services and hardware, is expected to grow 40% to 55% annually from $185 billion last year, generating revenues of $780 billion to $990 billion, Bain said.

Growth will be driven by the development of larger AI systems, larger data centers to train and run them, and companies and governments using the technology to improve efficiency.

Demand is growing so fast, Bain said, that it could create supply chain bottlenecks for components like chips. Combined with geopolitical tensions, the surge in sales could cause shortages of semiconductors, PCs, and smartphones.

Demand for chip components could grow 30% or more by 2026, putting pressure on manufacturers, Bain said. The cost of large data centers could jump from the current $1 billion to $4 billion to $10 billion to $25 billion in five years. Their capacity will grow above gigawatt from 50-200 megawatts.