12 Sep 2018
Banking Will Drive Cognitive/Artificial Intelligence Systems Spending in 2018 in Western Europe, but Healthcare Investments Will Grow Faster, Says IDC
LONDON, September 12, 2018 — Cognitive/Artificial Intelligence (AI) Systems spending will reach $3.0 billion in Western Europe in 2018, a 43% increase over 2017, according to International Data Corporation's (IDC) Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide. AI capabilities are expanding quickly, and use cases such as fraud analysis, sales process recommendation, and IT automation will drive Cognitive/AI Systems spending. Both the private and public sectors are looking at AI to streamline processes and enhance customer and citizen experience. As a result, Western European Cognitive/AI Systems spending is poised to ramp up even further, reaching $10.8 billion by 2022, a 39% five-year CAGR.
Banking will be investing the most on AI in 2018, followed by retail and discrete manufacturing. These three industries together will represent 42% of the overall Cognitive/AI Systems spending in Western Europe. Investments in finance are remarkable as AI allows companies to detect illicit acts on customer accounts and distinguish genuine from fraudulent transactions, which might cause reputational damage and significant financial losses.
By 2022, retail will surpass banking, with investments on AI approaching $1.8 billion. Retailers are looking at AI with interest, especially with the increasing deployment of automated customer service agents, chatbots, and virtual assistants. Providing customer service via learning programs that understand customer needs will allow retailers to reduce costs on human labor, while providing online support to shoppers.
Looking at the 2017–2022 CAGR, healthcare stands out with a very strong double-digit five-year growth. AI advancements in healthcare are leading to important breakthroughs in improving patient care models, in early detection and treatment of diseases, in diagnosis, and in medical research. AI is helping doctors automate diagnosis by extracting insight from a patient data to facilitate decisions and personalize treatments.
"AI is one of the most disruptive technologies we are witnessing and is a key enabler to promote digital transformation," said Andrea Minonne, research analyst, IDC Customer Insight and Analysis. "Banking, retail, and manufacturing are the biggest spenders, but healthcare is also set to experience rapid growth of AI investments. Thanks to its high-speed processing and learning capabilities, AI is a great technology to fulfill tasks that take humans longer to carry out, without compromising the accuracy of outcomes."
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of IDG, the world's leading technology media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
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