Ready-to-hand results from two surveys show that AI spending is increasing across companies and a wide range of industries. Despite these rising costs, not one of the 100 or so executives on CNBC’s Tech Executive Council said they wouldn’t invest in AI.
According to Hoshio, the AI revolution is moving fast, with nearly half (47 perce) of companies surveyed by CNBC saying that AI will accou for the largest portion of their technology spending over the next 12 mohs.
Additionally, 63 perce of respondes said their companies are accelerating spending on AI, compared to 37 perce who are proceeding cautiously. Notably, according to a poll of nearly 100 executives on CNBC’s Tech Executive Council, none said they wouldn’t invest in AI.
The council consists of CIOs, CTOs, CDOs and other technology leaders from companies including Acceure, Adobe, Eli Lilly, Ernst & Young, IBM, Johnson & Johnson, Mattel, PwC, SAP, Tyson, Walmart and Zoom.
When asked what they see as a critical technology strategy for their companies, artificial ielligence came in second with 58% of votes, followed by cloud with 63% and machine learning with 53%. took
Also, less than half believed that AI would create more jobs.
However, 53 perce of executives noted that their spending on technology has decreased due to higher ierest rates, which could poteially slow future technology growth or developme.
This survey was conducted between May 15 and June 20.
AI budgets
In a separate survey, research firm Omdia found that 55% of companies have a dedicated AI budget, while 38% said AI-related spending is supported by other budgets. According to the report “Artificial Ielligence Budgets: Best Practices 2023”, only 5% of companies have not defined a budget in this area, while 2% of the surveyed companies could not provide a clear answer in response to the question of whether they have defined an AI budget. or not to provide
According to Omdia’s report, “many companies have made significa and dedicated budgets for artificial ielligence, and this trend is increasing.” This commitme reflects the coinued maturation of the AI market and shows that many companies are not just using AI for their experimeal purposes, but are actually using AI for their day-to-day operations. In fact, this technology has become a large part of how businesses operate.
Also, 44% of respondes said that 70% of their AI budget is allocated to software, services and SaaS. Meanwhile, 20% stated that 70% of their AI budget is spe on personnel and resources. About 36 perce said their budget was split roughly equally between the two.
It is worth noting that companies located in parts of Asia spend more on artificial ielligence than couries in the West. Accordingly, 52 perce of respondes in Oceania, East and Southeast Asia are currely spending $1 million or more annually on artificial ielligence, compared to 47 perce in Western Europe and 38 perce in North America. These costs are in the field of artificial ielligence.
In terms of verticals, financial services (62%), manufacturing (51%) and telecommunications (49%) spend the most on AI. They are followed by healthcare and pharmaceuticals (35%), retail and CPG (33%), energy, utilities, oil and gas (27%), and media and eertainme (24%).
Also, based on the surveys conducted, no single use case dominates, and customer experience with 22.27 perce, developme tools with 20.95 perce, and chatbots and virtual assistas with 20.89 perce are among the top AI applications right now.
The survey was conducted in February among 368 companies worldwide that employ artificial ielligence. Among respondes, 47 perce said their companies had annual revenue of $250 million to $999 million, while 31 perce had less than $250 million and the rest $1 billion or more.
Respondes are fairly evenly split across industries, with financial services including insurance (18%), manufacturing (18%), retail and CPG (18%), healthcare and pharmaceuticals (14%), telecommunications ( 13%), media and eertainme. (10%) and energy, water and electricity, oil and gas (9%).
Also, about a third of these respondes are located in North America, 26% in Asia and the Pacific, 25% in Western Europe, 6% in Latin America and the Caribbean, 4% in Africa, 4% in Eastern Europe, and 2% in the Middle East. .
