Financial Association News, September 25th (Editor Zhou Ziyi) - The rapid popularization of artificial intelligence technology has disrupted enterprises and the economy, leading to the expansion of the global market for artificial intelligence-related products. Bain Consulting, in its latest report, stated that the market size is expected to reach nearly a trillion dollars by 2027.

In its annual 'Global Tech Report' released on Wednesday, September 25th, this consulting company pointed out that the market, including artificial intelligence-related services and hardware, will grow at an annual rate of 40% to 55% from last year's $185 billion base. This implies a revenue increase to $780 billion to $990 billion by 2027.

This growth momentum will be driven by larger-scale data centers, training and running bigger artificial intelligence systems. Additionally, this growth will also be driven by higher utilization rates by businesses and governments, as they leverage artificial intelligence technology to enhance efficiency.

Driving downstream industries.

Bain states that the rapid growth in demand for artificial intelligence products is putting pressure on the parts supply chain, including semiconductors required to run these systems. In response, Bain warns that sales growth coupled with geopolitical tensions may lead to shortages in semiconductors, personal computers, and smartphones.

Bain also mentioned in the report that by 2026, the demand for upstream chip components such as integrated circuit design and related intellectual property could increase by 30% or more, putting pressure on manufacturing companies.

Furthermore, as data center capacity (usually measured by power consumption) expands from the current 50-200 megawatts to over 1000 megawatts, the costs of large data centers may jump from the current $1 billion to $4 billion to $10 billion to $25 billion within five years.

The report states, "These changes are expected to have a huge impact on the ecosystem supporting datacenters, including infrastructure engineering, electrical utilities production, and cooling equipment."

Currently, ai has surpassed the experimental stage, and many companies are beginning to expand generative artificial intelligence in their business. Compared to large language models like GPT-4, small language models are more favored by enterprises and governments due to their lightness, efficiency, and cost advantages.

Governments including Canada, France, India, Japan, and the United Arab Emirates are spending large sums of money subsidizing sovereign ai, investing in domestic computing infrastructure, and creating and training local data ai models within their borders.

However, Anne Hoecker, Managing Director of Bain's global technology business, expressed that building a successful sovereign ai ecosystem may be time-consuming and expensive.

Editor/ping