AI Market in Europe to Reach $96B by 2027

In a new study conducted by the International Data Corporation (IDC), it is predicted that Europe will significantly increase its spending on Artificial Intelligence (AI) up to $34.2 billion by 2023, accounting for 20.6% of the global market. The study estimates an average annual growth rate (CAGR) of 29.6% between 2022 and 2027, slightly surpassing the global indicator of 26.9%. According to these forecasts, AI expenses in Europe will reach $96.1 billion by 2027.

Artificial intelligence is being actively implemented to enhance operational efficiency, optimize IT processes, and improve customer interactions. Specific focus is placed on the use of AI in the financial sector, telecommunications, and government entities due to the high levels of associated risks and fraud threats.

The retail trade and banking sectors are actively working on implementing AI to streamline customer and sales services. By 2023, sectors such as banks, professional services, retail trade, production, and telecommunications are expected to collectively occupy over 60% of the entire European AI market. However, higher growth rates in AI expenses are observed in the healthcare, media, and consumer services sectors.

Despite economic instability and inflation, the AI market continues to grow steadily, largely driven by increasing interest in generative technologies (Genai). IDC emphasizes that Genai is gaining more attention, raising concerns not only about the effective implementation of these technologies but also about ensuring their ethical use. Media and marketing industries, as well as the professional services sector, show the most promising areas for Genai, particularly in the creation of images and text generation.

/Reports, release notes, official announcements.