Most bank investments in Europe are in Al systems
The budget of the banks is steadily increasing, prioritizing the positives they can derive at the growth level from artificial intelligence (Al). The financial sector invests the most money, aiming primarily at digital transformation.
The funds spent are expected to amount to 22 billion dollars in 2022, having the back up of strong banking investment assets and industry. Based on estimates by IDC, European funding for AI systems will reach a value of 17.3 billion in 2021, while it will exceed 50 billion in 2025.
The IDC (Worldwide Artificial Intelligence Spending Guide) predicts the course of investments in AI systems in Europe, noting that they will evolve by 2025 with a complex annual growth rate (CAGR) of 26.7%.
Analysts in turn believe that banks and industry will be in the spotlight with spending on artificial intelligence projects over the five-year forecast period, with healthcare spending set to grow at the immediate rate by 2025.
Retail spending on AI technologies is expected over the next five years to focus mainly on automating the customer service and sales space.
A significant part of the investments will be allocated to Al solutions and quality management and research systems, which will improve forecasting and maintenance issues.
The AI market will strengthen significantly in Europe, with companies having registered AI systems in frontline technology, which will have a significant impact on various industries, according to IDC.
Companies in Europe are thus boosting investments in AI practices, as they utilize smart applications and automated approaches, in relation to the efficiency of businesses and their digital resilience, especially during the COVID-19 pandemic.
The European Union’s future plans for artificial intelligence technologies include increases in public and private investment of up to 20 billion euros on an annual basis.
AI is now a central operational point in the Green Deal and the EU Recovery Plan that has been in place since the beginning of the coronavirus.
The EU believes that focusing on artificial intelligence will contribute to the digital transition of public and private sectors.
Europe recognises the major changes that AI brings, meanwhile, to the workplace, business, the economy, health, safety and agriculture.
Against this background, the EU is designing a set of rules to manage the opportunities and issues that arise in AI.
The aim is to build credibility in AI, including managing its potential impact on citizens, society and the economy, as well as creating a more favourable environment for researchers, developers and businesses.