The global market for AI-related hardware and software is likely to reach between $780 billion and $990 billion by 2027, growing between 40 per cent and 55 per cent annually, according to a report on Wednesday. Larger data centres could drive costs to between $10 billion and $25 billion in five years, as per research by Bain Company. David Crawford, chairman of Bain's Global Technology practice, said that Generative AI is prime mover of current wave of change, but it is complicated by post-globalization shifts and need to adapt business processes to deliver value. "Companies are moving beyond the experimentation phase and are beginning to scale generative AI across the enterprise. As they do, CIOs will need to maintain production-grade AI solutions that will enable companies to adapt to a landscape that is quickly shifting," Crawford mentioned. Three key areas of opportunities - bigger models and larger data centres, enterprise and sovereign AI initiatives, and software efficiency and capabilities - could enable the AI hardware and software market to come close to a trillion-dollar industry in the next three years. AI workloads could grow 25 per cent to 35 per cent per year through 2027, Bain estimates. As AI scales, need for computing power will radically expand scale of large data centres over next 10 years.

AI hardware and software market to be worth $990b

965,1291,575,142,1613,2062

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