Date: 26/12/2023

China Top 2000 Companies Will Allocate Over 50% of Core IT Spend on AI Initiatives by 2027

IDC shared during the IDC FutureScape China event in Beijing that by 2027, the Top 2000 companies in China will allocate over 50% of their core IT spend on AI initiatives, leading to double-digit increase in rate of product and process innovations. IDC local analysts also revealed to over 400 ICT business and technology leaders IDC’s predictions for emerging technologies and industries that will help them navigate and seize opportunities in the digital business era.

Underscoring this year’s theme, "Mastering AI Everywhere in Digital Business Era", IDC expects worldwide spending on AI solutions to grow to more than $500 billion in 2027, reshaping the IT industry and the way businesses operate and make decisions at every level.

"GenAI has become a turning point in technology, business, and society, and in such an environment, it is even more necessary to be guided by insights. IDC's proprietary data covers the breadth of the IT industry across 100 countries and over 120 technology markets, helping business leaders target, plan, and execute their most important strategic initiatives, and win in this increasingly automated world." said Kitty Fok, Managing Director, IDC China. Fok also shared during the event her insights on exploring global markets with IDC’s analyst-led proprietary datasets that can help Chinese ICT suppliers to assess competitors, find new routes to market, and gain market share.

Lianfeng Wu, Vice President and Chief Research Analyst, IDC China, shared 3 new realities in the China market: digital application varies in different industries, population growth reached a turning point, and the coming era of technology revolution. "Business leaders should have a deeper understanding of the digital policies and real needs of customers, and further strengthen their branding and delivery of measurable value driven by AI, " said Wu.

"The increase in the IT spend on AI initiatives will lead to tech providers allocating 40% of their R&D, staffing, and CAPEX investments to AI/automation through 2026, making CIOs struggle aligning their vendor selection and IT operations priorities with new uses case, " highlighted Zhenshan Zhong, Vice President, IDC China, during his keynote speechon predictions for the China ICT market.

In addition, IDC analysts also shared the latest progress in China-developed AI technology and Intelligent Computing Power, the foundation of AI in, as well as the opportunities and challenges for AI applications in the financial, government, and manufacturing industries. 25 IDC China analysts were also available during the event for one-on-one deep-dive discussions with the attendees.

Each year, IDC releases its top technology predictions at worldwide, regional and country level through its IDC FutureScape reports and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years.

Asia/Pacific Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage on IDC insights to better understand clients’ priorities and enhance your storytelling and go to market plans, access the IDC FutureScape: Worldwide Future of Customer Experience 2024 Predictions — Asia/Pacific (Excluding Japan) Implications — Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation HERE.

For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.

Source:IDC

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