AI software growth to fall below current investor projections

According to a new study by Forrester, the overall artificial intelligence software market will grow below $ 150 billion to $ 200 billion, which is currently expected by investors, in the same period, despite swelling to $ 37 billion by 2025. Let’s do it.

Within the AI ​​software market, the growth of AI applications is constrained by technology vendors who frequently incorporate AI capabilities into their existing software products.

Forrester’s new report, “The AI ​​Software Market Will Grow to $ 37 Billion Globally by 2025,” outlines the main reasons for this updated AI software market outlook, excluding hardware and consulting services. ..

From 2023, AI software revenue will be less than 3% of the total application market. AI for business apps will become the norm, and applications incorporating AI-centric AI will become more pervasive throughout the application market.

60% of software buyers expect existing vendors to have AI capabilities. Over time, 60% of software buyers probably expect to receive AI capabilities from existing vendors rather than custom-creating their own applications.

AI-injected applications will no longer be able to maintain the status of premium products. Currently, 10% of vendors offer AI-powered apps at differentiated prices. As vendors add AI capabilities, the ability to charge AI premiums will be lost in competition.

The report also has the greatest potential for growth: the AI ​​maker platform used to create highly customized solutions and the AI ​​facilitator platform used for applications such as computer vision and natural language virtual assistants. It states. Other AI market segments that have the potential to grow include AI-centric applications for specialized medical tasks and AI infusion applications that create differentiated products through added AI capabilities.

Andrew Bartels, Forrester’s VP and Chief Analyst, said: “Although the demand for AI technologies, platforms and applications is high, the proliferation of AI will eventually make technology more common in software development.

“Investors think the AI ​​market is over-defined hyperbolic. They mistakenly loosen the impact of AI software or include categories adjacent to AI software. Business leaders are digital. We will become increasingly dependent on AI as a belief in our transformation strategy. Expect vendors to add AI capabilities at no additional cost. “

“Forrester helps organizations grow through customer attachment, which means putting them at the center of leadership, strategy and operations,” the company says.

“Through Forrester’s unique research, consulting and events, business and technology leaders around the world can work boldly to navigate change and build customer-focused growth strategies. Based on over 675,000 annual surveys, rigorous and objective methodologies, including ratings from consumers, business leaders, technology leaders, Forrester Wave, and the most innovative clients around the world. Wisdom. “

AI software growth to fall below current investor projections Source link AI software growth to fall below current investor projections

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