Trends in AI Adoption

In this lesson, we’ll be looking at some of the data that’s come out of Forrester, Gartner, and McKinsey about the growth areas previously outlined: embedded AI, ethical AI, creative AI, and autonomous AI development. Compiling the numbers into a section based on the data that’s come out of the research helps highlight the importance of these growth areas and gives us a bird’s-eye view of the state of AI adoption overall. We’ll begin the lesson with general trends about AI adoption overall and get into the numbers for each growth area next.

Trends shaping markets

According to research done by Forrester on trends impacting the US, China, Japan, France, Germany, Italy, Spain, and the UK, “AI software spending will double from 2021 to 2025, reaching $64 billion.” What is driving this adoption is the rise in AI-bolstered software products, particularly the rise of software companies expanding their AI features and capabilities, as well as a rise in AI tools made for creating other AI products and applications and, ultimately, the rise in AI native products themselves.

Prediction for AI software

Based on Forrester’s Global AI Software Forecast, 2022, overall, the AI software industry will “grow 50% faster than the overall software market,” and by 2025, 31% of AI software spending will be AI-infused. Forrester’s Data and Analytics survey also shows that “73% of data and analytics decision-makers are building AI technologies, and 74% see a positive impact on their organizations from the use of AI.”

Gartner’s findings are even more aggressive compared to Forrester’s on high-level AI trends, citing that worldwide AI software revenue is forecast to total $62.5 billion in 2022 and that “by 2025, the market for artificial intelligence (AI) software will reach almost $134.8 billion. Over the next five years, the market growth will accelerate from 14.4% in 2021 to reach 31.1% in 2025, considerably outpacing the overall software market growth.”