Global AI consumption is set to double by 2028, reaching $632 billion.
Generative AI is the main driver behind this notable upward trend in AI funding.
Financial companies will lead AI adoption, followed closely by the IT and retail sectors.
The overall expenditure on artificial intelligence is set to climb to $632B by 2028. This increase nearly doubles current spending and shows a strong expansion rate of 29% each year. The latest inquiry from the International Data Corporation highlights how quickly AI is spreading across different industries and how this is leading to considerable advancement. The rise is mainly due to advancements in generative artificial intelligence tech.
Generative AI Boosts Growth
Generative AI is the main factor driving the rise in its sales. Over the past two years, it has become more widely used and is expected to multiply by 59.2% each year. Other areas like machine learning and natural language processing will also see rise, yet generative AI is growing the fastest.
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While gen AI is expanding quickly, it will still be a smaller part of total spending compared to other AI technologies.
Impact on Industries and Workers
Financial services will lead in using AI followed closely by IT and retail. These three industries are expected to make up almost half of all AI spending by 2028. Other sectors like leisure and personal services will also invest significantly in AI. However, the rise in AI, especially generative AI, brings concerns about its effect on workers.
 A report from IBM warns that up to 1.4 billion workers could lose their jobs due to AI. Developed countries may see the most job losses because they use advanced technology more heavily, while developing regions may not be as affected. Some believe that training workers with AI skills could help reduce job losses.
Regions and Spending Areas
North America is expected to lead in AI expenses, reaching over $336 billion by 2028. Western Europe and the Asia-Pacific region will also see big increases in spending. Africa and the Middle East are expected to grow too, but on a smaller scale.Â
In terms of where the money will go, software is expected to receive the most investment, especially in AI-enabled applications and systems. Hardware operations, including on servers and storage, will also rise but at a slower rate. AI infrastructure will be the main use of these funds, though it will evolve more slowly compared to other uses.
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