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IT News Online IDC : European Spending on Artificial Intelligence to Reach 133 Billion by 2028

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The Rise of Generative AI

Generative AI (GenAI) solutions have been gaining traction since late 2022, with many organizations recognizing their potential to revolutionize various industries. These solutions use machine learning algorithms to generate new, original content, such as text, images, and music.

GenAI is expected to drive significant growth in the AI market, with a projected compound annual growth rate (CAGR) of 43.8 percent from 2023 to 2028.

The Rise of GenAI: A New Era in Artificial Intelligence

Understanding GenAI

GenAI, short for General Artificial Intelligence, refers to a new generation of AI systems that can perform a wide range of tasks, from simple calculations to complex decision-making, without being explicitly programmed for a specific task. This is in contrast to traditional AI systems, which are typically designed to perform a single task and require extensive programming and fine-tuning. Key characteristics of GenAI include: + Ability to learn from experience and adapt to new situations + Capacity to reason and make decisions based on complex data + Ability to generalize across different domains and tasks + Potential to surpass human intelligence in certain areas

The Business Case for GenAI

European companies are increasingly recognizing the potential of GenAI to drive business growth and innovation. With 40 percent of companies making significant investments in GenAI, it’s clear that this technology is becoming a key strategic priority.

Financial institutions are embracing AI to stay competitive in a rapidly changing market.

The Rise of AI in Financial Services

The financial services sector is poised to be a major beneficiary of artificial intelligence (AI) adoption. According to a recent report, the sector is expected to lead in AI spending over the forecast period, with services being the second-largest and fastest-growing category. This trend is driven by the increasing demand for digital transformation and the need for financial institutions to stay competitive in a rapidly changing market.

Key Drivers of AI Adoption in Financial Services

Several factors are driving the adoption of AI in financial services, including:

  • Digital transformation: The need for financial institutions to modernize their operations and improve customer experience is a key driver of AI adoption.

    “We expect to see significant investments in AI-powered tools for fraud detection, claims processing, and other areas where AI can provide a competitive edge.”

    The Rise of Augmented Intelligence: A New Era in AI Adoption

    The Growing Demand for Augmented Intelligence

    The world of artificial intelligence (AI) is undergoing a significant transformation, driven by the increasing demand for augmented intelligence. This new era of AI adoption is characterized by the integration of human expertise with machine learning capabilities, enabling organizations to make more informed decisions and drive business growth.

    Key Use Cases for Augmented Intelligence

    Several security-related use cases, such as augmented fraud analysis and investigation, will attract significant investment. These use cases will leverage AI-powered tools to detect and prevent fraudulent activities, ensuring the integrity of financial transactions and protecting sensitive data. Augmented claims processing, particularly in the insurance sector, will also be a key focus area.

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