With the region’s digital economy increasingly taking shape, digital transformation spending will reach $59 billion in 2024 and accelerate at a five-year CAGR of 15% to $88 billion in 2027.
That’s according to the predictions presented by International Data Corporation (IDC) last week as more than 400 senior executives from the region’s leading technology vendors, telcos, and IT service providers gathered in Dubai for the 2024 edition of IDC Directions Middle East, Türkiye, and Africa, which addressed the theme “Preparing Your Customers for an AI Everywhere Future.”
IDC expects AI spending in the region to top $3.0 billion in 2024, up 32% over 2023, with Group Vice President and Regional Managing Director Jyoti Lalchandani explaining that the AI investment priorities of end-user organizations will likely evolve over the coming years as they move beyond their initial focus on reducing costs.
Fintech Insights: Hyper-personalization in Banking: The Tech Journey to Serving a Segment of One
IDC forecast ICT spending in the Middle East, Türkiye, and Africa (META) will top $238 billion this year at its annual Directions Middle East, Türkiye, and Africa event, held in Dubai on February 1.
“Across the META region, there is a clear appetite for AI in general and generative AI (GenAI) in particular, with spending on AI forecast to reach $6.9 billion by 2027,” said Lalchandani. “However, many organizations are already questioning whether they are over-pivoting on cost reduction and not focusing enough on how AI can help them to grow their revenues. We expect revenue growth outcomes to take center stage in the next 3–5 years and providers must track this shift carefully with their core buyers to ensure that their AI-related offerings continue to align with the evolving business goals of their customers.”
IDC President Crawford Del Prete heralded GenAI’s emergence as a golden era of innovation that will reshape IT landscapes and customer engagement, predicting that global annual spending on GenAI will surpass $150 billion by 2027. Thomas Meyer, IDC’s group vice president for the EMEA region stressed that tech vendors need to develop responsible AI strategies that support their customers in unlocking funding for investments, ensuring ROI, and delivering significant business outcomes for prioritized use cases.
Read More About Fintech Interviews: How Blockchain-Powered Ecosystems Are Poised to Transform the Agricultural Sector
[To share your insights with us, please write to pghosh@itechseries.com ]
