Written by 2:18 pm AI Prediction, ChatGPT

### AI: The Decade’s Dominant Tech Trend Set to Soar to a $225 Billion Market by 2027

AI industry revenues will increase fifteen-fold between 2022 and 2027 on massive demand for the tec…

As per a statement released by UBS on Tuesday, the tech sector is poised for significant growth, with projections indicating a surge to $225 billion by 2027, primarily driven by the expanded utilization of artificial intelligence across various markets.

This growth trajectory signifies an impressive 152% compound annual growth rate, a substantial leap from the $2.2 billion recorded in 2022.

UBS forecasts a remarkable 15-fold surge in AI sector revenue, escalating from \(18 billion in 2022 to a projected \)420 billion by 2027. This revised forecast marks a 40% enhancement from UBS’s previous estimates, which were acknowledged as potentially overly conservative by experts.

Looking ahead, a surge in demand exceeding expectations is expected to propel AI software, resulting in a significant 138% growth rate for the application sector.

The report draws a parallel between the ChatGPT program and the transformative impact of the iPhone on the AI industry, highlighting the upcoming launches of various applications such as copilots and features like Turbo and perspective from OpenAI in the fourth quarter of 2023 as a pivotal moment akin to the App Store’s inception.

Moreover, the statement underscores the importance of enhanced transparency in AI system expenditure to sustain the tech sector’s momentum over the coming years. The segment is projected to expand from \(25.8 billion in 2022 to \)195 billion by 2027.

With unparalleled growth prospects within the tech landscape, AI is poised to emerge as one of the fastest-growing and most substantial segments globally, potentially defining the “tech theme of a decade.”

The technology components and GPUs essential for AI training and operations are expected to be the primary beneficiaries of increased investment in 2024. This surge in spending is anticipated to drive a threefold revenue increase for silicon and software companies, soaring from \(15.8 billion to \)165 billion.

UBS emphasizes the significance of early regulatory frameworks over delayed restrictions on growth, despite investor apprehensions surrounding escalating regulatory discourse concerning AI.

While acknowledging the risks associated with regulations, including export controls, UBS advises vigilance, citing the potential for significant market opportunities amidst geopolitical or regulatory upheavals, as highlighted in their recent semiconductor thematic analysis.

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Last modified: January 15, 2024
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