The growth will be fuelled by bigger AI systems and larger data centres to train and run them, driven by companies and governments using the technology to boost efficiency. — Bloomberg
NEW YORK: The global market for artificial intelligence (AI)-related products is ballooning and will hit as much as US$990bil in 2027, as the technology’s quick adoption disrupts companies and economies, Bain & Co says.
The market, including AI-related services and hardware, will grow 40% to 55% annually from US$185bil last year, the consulting firm said in its fifth annual Global Technology Report released yesterday.
That will lead to revenue of US$780bil to US$990bil, Bain said.
The growth will be fuelled by bigger AI systems and larger data centres to train and run them, driven by companies and governments using the technology to boost efficiency.
Demand is rising so fast that it’ll strain supply chains for components, including chips needed to run the services, Bain said.
Combined with geopolitical tensions, rising sales could trigger shortages in semiconductors, personal computers and smartphones, Bain warned.
Demand for upstream chip components such as integrated circuit design and related IP could rise 30% or more by 2026, putting pressure on manufacturers, Bain said.
The cost of larger data centres could jump from US$1bil to US$4bil now to between US$10bil and US$25bil in five years, as their capacity expands to more than a gigawatt from 50 to 200 megawatts currently, it said.
“These changes are expected to have huge implications on the ecosystems that support data centres, including infrastructure engineering, power production and cooling,” the consultancy said.
Companies are moving beyond an experimentation phase and beginning to scale generative AI across their operations.
Small language models, similar to the large language models that led to the creation of OpenAI’s ChatGPT chatbot, but lightweight and efficient, could be favoured by enterprises and countries.
This comes amid concerns surrounding costs and data privacy.
But establishing successful sovereign AI ecosystems will be time-consuming and expensive, according to Anne Hoecker, head of Bain’s Global Technology practice. — Bloomberg
