According to the 5th edition of Global Technology, consulting firm Bain & Co. forecasts that the AI market, including related services and hardware, will grow 40 to 55 percent annually from $185 billion in 2023. This will lead to revenue of between $780 billion and $990 billion in 2027.
As businesses and governments adopt AI technology, it is the growth driver of the artificial intelligence market.
The rapid increase in demand will put pressure on the supply chain of components, including the chips needed to run services. Combined with political factors, the increase in sales could lead to shortages of semiconductors, personal computers and smartphones. Demand for products such as chip design and intellectual property is expected to increase by at least 30% by 2026, putting pressure on manufacturers.
The cost of larger data centers could rise from $1 billion to $4 billion today to $10 billion to $25 billion within five years as capacity expands. These changes could have major implications for the ecosystem that supports data centers, according to Bain & Co.
Companies are moving from the experimental stage to scaling up the use of generative AI in their operations, with small language models favored by businesses and governments due to cost and data security, according to the consultancy.
Countries like Canada, India, France, Japan, and the UAE are spending billions of dollars on sovereign AI funding investing in domestic computing infrastructure and homegrown AI models, trained with original data.
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