AI Business is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

AI Spending In Europe To Reach $5.2bn This Year

by Ciarán Daly
Article Image

LONDON - Investment and spending in artificial intelligence systems will reach $5.2 billion across Europe in 2019, an increase of 49% over 2018, according to a new report by the International Data Corporation (IDC).

AI adoption is growing at an unprecedented rate across European markets, with 34% of enterprises in Europe now leaving the proof-of-concept (POC) stage and moving onto real-world implementation of these radical automation technologies, according to the IDC European Vertical Markets Survey 2018-2019. In fact, IDC's estimates show that European spending in AI will reach $13.5 billion by 2022.

"Many European retailers, such as Sephora, ASOS, and Zara, as well as banks such as Natwest and HSBC, are already experiencing the benefits of AI - including increased store visits, higher revenues, reduced costs, and more pleasant and personalised customer journeys. Industry-specific use cases related to automation of processes are becoming mainstream and the focus is set to shift toward next-generation use of AI for personalization or predictive purposes," said Andrea Minonne, senior research analyst, IDC Customer Insight & Analysis in Europe.

The report goes on to reveal further insights into the AI market in Europe, including that by 2022, healthcare will be the fastest growing industry for AI investments. This cross-industry is, IDC claim, linked to a number of extensive investment programmes from European governments. The European Commission's 'Horizon 2020' innovation programme will see €1.5 billion of investment in AI research centers across Europe through to 2020. AI adoption across Europe will also be spurred by the UK's £1 billion AI Sector Deal, as well as the French government's plans for €1.5 billion of public funding in AI by 2022.

Reacting to the report, Matt Hooper, SVP at customer communications firm IMImobile, told AI Business:

"It's encouraging to see automation and customer experience driving increased investment in AI. Automation is key to achieving significant operaitonal efficiencies and delivering proactive, end-to-end customer communication - yet most companies are only touching the tip of the iceberg."

"For companies to fully realise the benefits of automation and AI, they need to build and have visibility into the end-to-end customer journey. Only then can they drive proactive two-way customer communication."

Practitioner Portal - for AI practitioners


Shaping AI and analytics services


AI and analytics teams must market themselves – and they have to have a clear service strategy


UK's ICO publishes guidance on AI and data protection


The document aims to help organizations mitigate the risks of using personal data in AI applications

Practitioner Portal


More EBooks

Upcoming Webinars

More Webinars

Experts in AI

Partner Perspectives

content from our sponsors

Research Reports

More Research Reports


AI tops the list of most impactful emerging technologies

Infographics archive

Newsletter Sign Up

Sign Up