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Ilya St
in
Finance
October 21 09:08

Expenditure on AI systems in Asia is approaching US$6 billion

Artificial intelligence systems are becoming increasingly popular today. Every country, region, claims to achieve high technological achievements and strives to master artificial intelligence technologies
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This year, Asia-Pacific region is expected to increase an expenditure on these systems (by about 54%) and exceed the mark of US$6 billion. At the same time, according to IDC estimates, the growth of investment is unlikely to decrease, they are projected to grow even more by 2023, to US$21.4 billion. Such growth rates are associated with the rising relevance of artificial intelligence technologies and, consequently, an increase in consumer spending.  
IDC market analyst Ritika Srisswata shared her own assumptions and stated, that "AI is having an impact across many industries with widespread utilisation but is still at a nascent stage in Asia-Pacific,". This outlines a growing relevance of artificial intelligence technologies in the Asia-Pacific region. As for the main consumers, she noted, that "from providing charts for better customer service to improving the efficiency of operations and tasks for their business models, industries like banking, retail and professional services are spending in this technology at scale."
After conducting its own analysis, IDC concluded the banking business allocates more financing on AI and is a little ahead of a retail trade in terms of spending per share, they make up 10.7% and 10.2% respectively. "Banking will predominantly use AI and cognitive systems for fraud analysis and investigation, as well as well as automated customer service agents," IDC explained its conclusions. 
"Close behind is retail in terms of investments in AI-enabled solutions with use cases such as expert shopping advisors and product recommendations and merchandising for omnichannel operations - shaping the industry, representing 45.1 percent of the overall retail industry spend in 2019."
Artificial intelligence technologies are widely in other industries too. High growth rates will be observed in telecommunications (56.6%) and manufacturing (47.1%).
Today, special automated customer service agencies are popular, and this is exactly why there are cases of "significant investment" in the use of artificial intelligence systems, amounting at $758.4 million.
Undoubtedly, such large expenditures positively impact companies and an industry as a whole and contribute to development of artificial intelligence technologies . The expensive part of these systems is the cost of hardware. In 2019, about 4 billion U.S. dollars will be allocated for this purpose. They are going to be spent on supporting servers and storage.  
Artificial intelligence systems are the latest high-potential technologies, capable of bringing various sectors of the economy to a fundamentally new level, this is why investing in IT services is highly costly.    
"Although experimentation is common, enterprise deployment of AI is still relatively rare, and much remains to be done if Asia Pacific companies hope to compete with major players in China and the US," added Dr. Christopher Marshall, associate vice president of Asia Pacific, IDC. He says that although the region is now actively investing in artificial intelligence systems, it is still very far from leading countries such as the United States or China.