UBS: AI market value will reach $225 billion by 2027‎

A memorandum issued by UBS said that the artificial intelligence technology industry is currently in its infancy, and will witness a tremendous cycle of growth over the next five years, indicating that the value of the artificial intelligence market will reach $225 billion by 2027.

According to CNBC, this is a big jump from levels of only $2.2 billion in 2022, and these numbers also indicate a compound annual rate of up to 152%, which raises artificial intelligence revenues by up to 15 times, according to For UBS

This will contribute to increasing artificial intelligence revenues from $18 billion in 2022 to $420 billion in 2027, indicating that the increasing demand for artificial intelligence technologies will contribute to pushing it forward to increase the compound annual growth rate to a rate of up to 138% for the sector. Applications

Many new applications that provided AI services came to continue progress in this field after ChatGPT constituted a turning point for artificial intelligence similar to the one that witnessed the emergence of the iPhone and the revolution it brought about in the field of mobile phones.

In addition to the clear trend of spending on AI infrastructure, it will also contribute to the technology’s momentum over the coming years, and this sector is expected to grow from $25.8 billion in 2022 to $195 billion in 2027.

The report explained that this is likely to contribute to making artificial intelligence one of the fastest growing and largest sectors in the field of global technology, as there are no other technological sectors witnessing the same growth.

The biggest beneficiaries of increased spending in 2024 will be the hardware chips and graphics processing units on which AI is trained and run.

This is set to provide a ten-fold boost to semiconductor and platform companies, helping to increase industry revenues from $15.8 billion to $165 billion.