The role of artificial intelligence (AI) applications in enterprises is ‘rapidly evolving’ with particular focus on the customer relationship management (CRM) and enterprise resource management (ERM) spheres, according to IDC.
As per the analyst firm’s latest Worldwide Semiannual Artificial Intelligence Tracker analysis, IDC found global revenues for the overall AI market, including software, hardware and services, will top $156.5 billion in 2020.Of this, software will comprise 80% of all AI revenue, with AI applications forming 96% of that bucket. CRM AI and ERM AI applications will be the two largest components of AI applications revenue at 20% and 17% respectively.
IDC crowned Adobe as the leading AI-centric CRM provider, according to market share for the second half of 2019, with almost 30% share. Oracle, Sprinklr, Bazaarvoice, and Salesforce were the next four entrants. Ceridian is the leading provider of AI-centric ERM applications.
The services market for AI is expected to reach $18.4bn in revenues by 2020, according to IDC. Rising demand for expertise in embedding AI-enabling technologies into business analytics and intelligent automation initiatives is contributing to this ‘highly competitive and fragmented’ market. IBM, Accenture, Deloitte, Infosys and Cognizant are the five leaders in this category, although their combined share is only at a third of the overall market.
Jennifer Hamel, research manager for analytics and intelligent automation services at IDC, said the Covid-19 pandemic had interrupted the momentum of AI services market growth, but better times were ahead. “Enterprise demand for AI capabilities to support business resiliency and augment human productivity will sustain double-digit expansion in 2020 even as other discretionary projects experience delays,” Hamel added.
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