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Forrester: Where Is Artificial Intelligence In Forrester’s Tech Market Numbers? It’s Hiding

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I have gotten some inquiries about where spending on artificial intelligence and cognitive technologies occur in our tech market numbers (see, for example, “US Tech Market Outlook For 2017 And 2018: Mostly Sunny, With Clouds And Chance Of Rain”).  The short answer is that we include them in our data on business intelligence and analytics, though so far  spending on these technologies is still small — probably than a billion dollars for 2017.

But even as artificial intelligence spending grows, it is likely to remain small in terms of visibility.  That’s because artificial intelligence solutions are likely to be functions in existing software products, and not something that firms buy directly.  Put another way, the biggest buyers of AI will probably be software, services, and hardware vendors, who use AI to help their products and services work better.

There is precedence for this pattern in the BI and analytics market.  My Forrester colleague Boris Evelson has been collecting data from the leading BI vendors as to the percentage of their revenues that they get from end customers versus from OEMs (original equipment manufacturers).  On average, about 10% of these vendors’ revenues come from sales to OEMs.  And that could well be understated, because vendors like IBM, Microsoft, Oracle, or SAP don’t provide data on the explicit (or more likely implicit) value of their analytics products that are used in their applications.

Read the entire article here, Where Is Artificial Intelligence In Forrester’s Tech Market Numbers? It’s Hiding

via the fine folks at Forrester Research.

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Forrester Research Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Forrester’s unique insights are grounded in annual surveys of more than 500,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of our most innovative clients. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations.

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