It is estimated that European artificial intelligence (AI) spending will exceed $7 billion in 2019 and will almost triple in the next four years, with a compound annual growth rate of 32%. According to IDC, European artificial intelligence spending is expected to exceed $21 billion by 2023.
By 2023, the banking, retail, and discrete manufacturing industries will be the industries with the highest spending on artificial intelligence systems, absorbing 39% of spending. Healthcare remains an attractive market for artificial intelligence, and while many hospitals are piloting projects and have not yet begun full implementation, increasing investment in artificial intelligence diagnostic and treatment systems will support rapid growth in spending, which will accelerate 38%. Five-year compound growth rate in the health sector.
The investment in artificial intelligence is largely driven by efforts around customer experience and digital transformation, as companies are focusing on providing large-scale empathy while using smart methods to expand production and processes and distribute attention among employees.
Product recommendation is expected to be one of the three fastest growing use cases by 2023, indicating that European companies have recognized the importance of integrating customer focus and AI into their business models. In particular, retailers are moving away from traditional product recommendations and adopting a customer-centric approach to intelligence that enables them to gather customer insights and provide personalized recommendations based on personal preferences.
IDC's data estimates that more than half of the artificial intelligence spending by 2023 will be driven by the UK, Germany and France, while nearly one-third of the same spending will be driven by other Western European countries (including Austria, Belgium, Denmark), Finland, Greece, Ireland. , Netherlands, Norway, Portugal, Sweden and Switzerland). Italy and Spain account for only a small portion of the expenditure.
The UK, Germany and France have artificial intelligence-focused entrepreneurship centres in London, Berlin and Paris and will account for a large portion of future investment, particularly in financial technology, health technology, marketing and advertising. These countries also have large artificial intelligence investors, providing incentives and accelerating growth for start-ups and large technology companies, hoping to use artificial intelligence to digitally transform digital and disrupt the market.
Overall, even though Central and Eastern Europe (CEE) has a relatively small market share in artificial intelligence spending across Europe, organizations are increasingly using artificial intelligence because it has become a key part of digital transformation, so the artificial intelligence's biggest consumers of the system are banks and manufacturing.