Middle East & Africa will see fastest AI spending growth

Issue 2/3 2023 News & Events, AI & Data Analytics

Spending on artificial intelligence in the Middle East and Africa (MEA), including Israel, will reach $3,0 billion in 2023, according to the latest Worldwide Artificial Intelligence Spending Guide from International Data Corporation (IDC).

While this will account for just 2% of the global total for 2023 ($151,4 billion), the region will see the fastest growth rate worldwide over the coming years, with IDC forecasting that AI spending in MEA will increase at a compounded annual growth rate (CAGR) of 29,7% over the 2022–2026 period, reaching $6,4 billion in 2026.

"The rapid adoption of cloud and digital transformation in MEA will result in AI being incorporated into many different products and solutions," says Manish Ranjan, Senior Program Manager for Software, Cloud, and IT services at IDC MEA. "Organisations across the region are investing in AI technologies, and related software and services, to drive greater efficiency through automation that contribute to a more agile operating environment. The effects of the pandemic have fuelled further spending in relation to AI/ML adoption, particularly within the banking and finance, manufacturing, trade, healthcare, and government verticals."

Banking, retail, and federal/central government will be the MEA region's biggest spenders on AI in 2023, followed by discrete manufacturing. Together, these four industries will account for nearly half (44%) of the region's total AI spending in 2023. However, IDC expects professional services and transportation to be the fastest-growing industries over the five-year forecast periods, with respective CAGRs of 36,4% and 33,9%.

"AI growth in the region looks very promising as businesses are increasingly investing in AI- and analytics and business intelligence (ABI)-based solutions in order to strengthen and expand their customer experiences, build digital capabilities, and drive innovation," says Ranjan. "Augmented customer service agents, fraud analysis and investigation, augmented threat intelligence and prevention systems, and sales process recommendation and augmentation are the key business use cases where organisations are investing more in the market.”

"Numerous challenges will accompany the region's increasing adoption of AI, with the most critical being the lack of skilled resources such as data scientists, data engineers, and AI modellers. However, the region has multiple initiatives in place aimed at upskilling local talent, with organisations in both the public and private sectors establishing partnerships to foster AI- and ML-specific learning."

Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Pentagon appointed as Milestone distributor
Elvey Security Technologies News & Events Surveillance
Milestone Systems appointed Pentagon Distribution (an Elvey Group company within the Hudaco Group of Companies) as a distributor. XProtect’s open architecture means no lock-in and the ability to customise the connected video solution that will accomplish the job.

SMART Estate Security returns to KZN
Nemtek Electric Fencing Products Technews Publishing Axis Communications SA OneSpace Editor's Choice News & Events Integrated Solutions IoT & Automation
The second SMART Estate Security Conference of 2024 was held in May in KwaZulu-Natal at the Mount Edgecombe Estate Conference Centre, which is located on the Estate’s pristine golf course.

Latest AI solution to manage guards
DeepAlert Products & Solutions Surveillance AI & Data Analytics
No guard at the guardhouse? Guard under duress? Guard asleep? DeepAlert’s AI technology delivers real-time alerts to mobile phones and video management systems, helping you manage your guards more effectively.

From the editor's desk: Just gooi a cable
Technews Publishing News & Events
      Welcome to the 2024 edition of the SMART Estate Security Handbook. We focus on a host of topics, and this year’s issue also has a larger-than-normal Product Showcase section. Perhaps the vendors are ...

Secutel wins OSPA Award for Outstanding New Security Product
Secutel Technologies News & Events Access Control & Identity Management
[Sponsored] Secutel Technologies’ NoKey Access Control solution won the Outstanding New Security Product category at the 2024 OSPAs in South Africa. The awards were presented at Securex 2024 where all category finalists were recognised for their contribution to the security industry.

ONVIF launches new working groups for cloud, metadata and audio
News & Events Surveillance
ONVIF, the global standardisation initiative for IP-based physical security products, is announcing the formation of three new working groups to tackle standardisation work in cloud connectivity, audio, and advanced metadata.

Inaugural Gallagher Security Johannesburg networking roadshow
Gallagher News & Events
Held at Johannesburg’s Foghound Coffee Company in Midrand from 11 to 12 June, security industry professionals gather at the inaugural Gallagher Security Johannesburg Networking Roadshow.

Trend Micro launches first security solutions for consumer AI PCs
Information Security News & Events
Trend Micro unveiled its first consumer security solutions tailored to safeguard against emerging threats in the era of AI PCs. Trend will bring these advanced capabilities to consumers in late 2024.

Dallmeier receives ISO 27001 certification
Dallmeier Electronic Southern Africa Surveillance News & Events
Dallmeier has received ISO 27001 certification for its Information Security Management System (ISMS). The international standard for information security management ensures that companies meet the highest standards of data protection and data security.

Local manufacturing is still on the rise
Hissco Editor's Choice News & Events Security Services & Risk Management
HISSCO International, Africa's largest manufacturer of security X-ray products, has recently secured a multi-continental contract to supply over 55 baggage X-ray screening systems in 10 countries.