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Forrester: AI Is the Largest Growth Area for the Software Industry

There’s no denying that artificial intelligence (AI) has become an essential component of modern technology, but it may also be the largest growth area in the software industry going forward, according to research firm Forrester. The firm’s research suggests that off-the-shelf and platform AI software represents the biggest area of growth, and it predicts that spending on AI will increase from $33 billion in 2021 to $64 billion in 2025. The pandemic accelerated the adoption of AI-based solutions as well as the number of companies offering AI software — and it isn’t slowing down.

Overall, the AI-infused software market grows as enterprises embed the technology into their solutions, and companies like Oracle are innovating by incorporating AI into a wider range of industries. Forrester’s research predicts that AI tools and AI-powered cybersecurity solutions will be among the fastest growing segments as organizations worldwide deal with the constant threat of attacks.

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As U.S. spending on AI increases, Europe lags behind, spending roughly $8 billion per year on the technology — the United Kingdom leads the continent in both adoption and creation, as well as in AI investment.