One-third of tech vendors invest $ 1 million or more in AI within two years

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STAMFORD, Connecticut – A recent report shows that one-third of tech organizations plan to invest $ 1 million or more in artificial intelligence (AI) technologies over the next two years.

Gartner’s report, “Emerging Technologies: AI Technology Spending in 2021 – Survey Trends,” also shows that the vast majority of respondents (87%) who see AI as a major investment area believe that funding for IT Industry-wide AI will increase at a “moderate to rapid rate” through 2022, the firm said last month.

“Diverse and rapidly evolving AI technologies will impact all industries,” said Errol Rasit, senior vice president of Gartner. “Tech organizations are increasing their investments in AI, as they recognize its potential not only to assess critical data and improve business efficiency, but also to create new products and services, expand their customer base and generate new business. new income.

“These are serious investments that will help dispel the AI ​​hype.”

Focus on investing in AI

The report shows that AI technologies have the second highest average funding allocation among other ’emerging technologies’, such as cloud and the Internet of Things (IoT).

Tech organizations that plan to invest in AI expect to spend the most in four areas on average: computer vision, $ 679,000; Composite applications generated by AI, $ 624,000; Development of AI-enhanced software, $ 584,000; and AI data and analytics, $ 565,000.

“Very few respondents reported funding amounts below $ 250,000 for AI technologies, indicating that developing AI is expensive compared to other technological innovations,” said Rasit.

“This is not an easy segment to grasp, due to the complexity of building and training AI models. “

See more: Artificial Intelligence Market

The “immaturity” of AI, an obstacle to development and adoption

The results of “AI Technology Spending” highlight “the relative immaturity of AI technologies compared to other areas of innovation,” Gartner said.

For example, 41% of respondents said AI was still ‘in development or in the early stages of adoption’, while around half said “significant adoption by target customers” of their AI-based products and services.

Responses suggest there is “a wave of potential adoption” as new or improved AI products and services become available, according to Gartner.

Companies investing in AI have said the main reason for failure when integrating emerging technology is the technology’s immaturity.

Product managers said the main obstacles to their progress in implementing AI are product complexity and lack of skills.

“These survey responses reflect the difficult development cycle of AI technology, given its complexity as well as industry-wide challenges in recruiting AI talent due to the limited number of people. qualified people, ”said Rasit.

See more: Artificial intelligence: current and future trends

Methodology of the report

Investigation for the report “Emerging Technologies: AI Technology Spending in 2021 – Survey Trends” was conducted online from April to June 2021.

Gartner surveyed 268 people in China, Hong Kong, Israel, Japan, Singapore, UK and US

Respondents were involved in their organization’s portfolio decisions for emerging technologies and worked in a high-tech industry organization with revenue of $ 10 million or more for fiscal 2020.

See more: Top Performing Artificial Intelligence Companies


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