33% of Technology Providers Plan to Invest $1 Million or More in AI Within Two Years: Gartner

by | Oct 3, 2021

Data and AI for India, artificial intelligence, AI career

STAMFORD, Conn., September 29, 2021 — One-third of technology and service provider organizations with artificial intelligence technology plans said they would invest $1 million or more into these technologies in the next two years, according to a new survey* from Gartner, Inc. The vast majority of survey respondents (87%) with AI technologies as a major investment area believe industrywide funding for AI will increase at a moderate to fast pace through 2022.

“Rapidly evolving, diverse artificial intelligence technologies will impact every industry,” said Errol Rasit, managing vice president at Gartner. “Technology organizations are increasing investments in AI as they recognize its potential to not only assess critical data and improve business efficiency, but also to create new products and services, expand their customer base and generate new revenue. These are serious investments that will help to dispel AI hype.”

Compared with other emerging technology areas such as cloud and IoT, artificial intelligence technologies had the second-highest reported mean funding allocation. Respondents whose organizations invested in AI reported their highest planned investment in computer vision, at an average of $679,000 over two years (see Figure 1).

Figure 1: Level of Funding Allocated to AI Emerging Technologies

Source: Gartner (September 2021)

“Very few respondents reported funding amounts of less than $250,000 for AI technologies, indicating that AI development is cost-intensive compared to other technology innovations. This is not an easy segment to enter due to the complexity of building and training AI models,” said Rasit.

Barriers to Artificial Intelligence Technologies Adoption and Integration Remain

The survey also highlights the relative immaturity of AI technologies compared to the other innovation areas. Just over half of respondents report significant target customer adoption of their AI-enabled products and services. Forty-one percent of respondents cited AI emerging technologies as still being in development or early adoption stages, meaning there is a wave of potential adoption as new or augmented AI products and services enter general availability.

Technology immaturity is cited as a top reason among AI-investing organizations leading to failure when integrating an emerging technology. Furthermore, product leaders investing in AI whose implementations are progressing slower than expected reported product complexity and a lack of skills as the main hindrances to their progress.

“These survey responses reflect the difficult cycle of developing AI technology, given its complexity, as well as industrywide challenges in hiring AI talent due to the finite number of skilled individuals,” said Rasit.

 

 

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Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
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