Forrester has revealed that global artificial intelligence (AI) software adoption will grow 50 percent faster than the overall software market over the next two years, with an annual growth rate of 18 percent. Among the eight countries (the US, China, Japan, France, Germany, Italy, Spain, and the UK) included in the forecast, AI’s share of software spend is expected to increase from 4.3 percent in 2021 to 6 percent by 2025.
However, of the European countries examined – the UK, Germany, Spain, France, and Italy – they are reportedly falling behind the US and China regarding AI software spending. Germany is leading the European countries in overall AI spending, with $2.4 billion expected to be spent on AI software by the end of 2022. The UK and France are forecasted to spend $2.3 billion and $1.4 billion, respectively, within the same timeframe.
Ash Finnegan, digital transformation officer at Conga comments on the state of AI in the UK and its projected growth rate:
“Forrester’s latest forecast shows that AI has great potential and leaders are quickly realising the benefits it can offer their organisations – from automating revenue operations to better leveraging data analytics to drive their decision-making. These statistics clearly show AI’s adoption has become mainstream, but leaders will need to manage its complexity and think carefully about the technology that they are selecting given the continued evolution of business models.
“As the report shows, the UK and Europe are lagging compared to the 72 percent global market spend coming from the US and China. Perhaps this is the result of the accelerated adoption of AI witnessed throughout the pandemic, as leaders rapidly transformed their operations in response to the new business climate, many of which are now on tighter budgets as a result. Moving forwards, leaders will have to be far more strategic with their investments, especially if they are looking to use AI to make informed decisions or strategic changes to their business.
“AI is not a silver bullet – it can prove costly when it goes wrong. As a technology it offers many competitive advantages, but that does not necessarily mean it is easy to implement or deliver as part of a wider digital transformation programme. Rather than rushing these projects, leaders need to think with a level head and approach this methodically. All systems, data and processes need to be aligned prior to implementation. Without stepping back and reviewing their current operational model, leaders will never understand where AI would be best suited and where it can add real value.”