AI to Inject $19.9 Trillion into Global Economy by 2030
▼ Summary
– AI is projected to contribute $19.9 trillion to the global economy by 2030, according to SDAIA’s Dr. Esam Alwagait.
– Global AI spending is forecasted to reach $1.5 trillion by 2025 and $2 trillion by 2026 across various market segments.
– Saudi Arabia is advancing its leadership in data and AI to align with Vision 2030 and rank highly in global AI indicators.
– Meeting global AI demand by 2030 requires $2 trillion in annual revenue, but a funding gap of $800 billion remains.
– AI compute demand is outpacing semiconductor efficiency, indicating a need for dramatic increases in power supply.
The global economic landscape is poised for a seismic shift, with artificial intelligence projected to inject a staggering $19.9 trillion into the world economy by 2030. This forecast was highlighted by Dr. Esam bin Abdullah Alwagait, Director of the National Information Center at the Saudi Data and Artificial Intelligence Authority (SDAIA). He delivered these remarks during a visual presentation at a reception hosted by the Saudi embassy in Lisbon, celebrating the Kingdom’s 95th National Day. Dr. Alwagait underscored that this strategic focus solidifies Saudi Arabia’s role as a leading example of using cutting-edge technology to drive sustainable growth.
This ambitious trajectory firmly establishes the Kingdom as an international benchmark for harnessing sophisticated technologies to achieve long-term, sustainable development. Dr. Alwagait stressed that Saudi Arabia is decisively strengthening its leadership in data and artificial intelligence, a move that aligns directly with the goals of Saudi Vision 2030. The nation is actively working to secure a place among the world’s top performers in key AI indicators.
The financial momentum behind AI is equally impressive. Global spending on artificial intelligence is anticipated to hit $1.5 trillion by 2025, climbing to $2 trillion just a year later in 2026, according to analysis from Gartner, Inc. A detailed breakdown of projected expenditures across various AI markets reveals substantial growth. In 2024, AI services are expected to reach $259.5 billion, while AI application software will total $83.7 billion. The following year, spending on AI services is estimated to rise to $282.6 billion, with AI application software experiencing a significant surge to $172.0 billion. By 2026, AI services are forecast to hit $324.7 billion, and AI application software is projected to grow to $269.7 billion.
Other sectors are also set for rapid expansion. AI infrastructure software is projected to jump from $56.9 billion in 2024 to $126.2 billion in 2025, and further to $229.8 billion in 2026. Generative AI models will see a notable increase, moving from $5.7 billion to $14.2 billion in 2025, and reaching $25.8 billion by 2026. The hardware supporting this boom is also growing, with AI-optimized servers expected to expand from $140.1 billion in 2024 to $267.5 billion in 2025, and $329.5 billion by 2026. Additionally, AI-optimized Infrastructure as a Service (IaaS) is projected to grow from $7.4 billion to $18.3 billion in 2025 and $37.5 billion in 2026.
However, meeting this explosive global demand presents a formidable financial challenge. New research from Bain & Company indicates that an $800 billion funding gap remains to keep pace with AI demand by 2030. To properly fund the required computing power, generating $2 trillion in annual revenue is considered essential. By the end of the decade, technology leaders will need to navigate the dual challenge of deploying approximately $500 billion in capital expenditures while simultaneously identifying around $2 trillion in new revenue streams to meet demand profitably. Compounding this issue is the fact that AI computing demand is rapidly outstripping gains in semiconductor efficiency, pointing to a critical need for a massive increase in power supply on electrical grids that have seen little capacity expansion for decades.
(Source: Economy Middle East)
