IDC Predicts Generative AI Spending to Surge to $143 Billion by 2027 with 73% Growth Rate, Accounting for Over a Quarter of Total AI Spending

IDC forecasts generative AI spending to reach $143 billion in 2027, representing a 73% CAGR from 2023-2027.

Generative AI spending growth rate is over 2x that of overall AI spending.

By 2027, generative AI is predicted to account for 28% of total AI spending, up from 9% in 2023.

Early generative AI spending will be constrained, shifting to aggressive build-out and adoption.

Companies like Google, Microsoft and Nvidia are making major investments in generative AI.