Disruptive change is coming! Bain predicts optimistically: The global AI market will reach a trillion dollars by 2027.

Bain & Company predicts that with the rapid proliferation of Artificial Intelligence (AI) technology disrupting businesses and economies, the global market for AI-related products is expanding and is expected to reach $990 billion by 2027. In its fifth annual "Global Technology Report" released on Wednesday, the consulting firm said that the AI market, including related services and hardware, will grow by 40% to 55% annually from the $185 billion base in the previous year. Bain stated that this growth will bring in revenues of $780 billion to $990 billion. This growth trend is primarily driven by larger and more advanced AI systems and data centers, as well as companies and governments increasingly adopting AI technology to improve efficiency. Bain noted that the rapid demand growth will put pressure on the supply chain for components, including chips needed to run these services. Bain warned that this, combined with geopolitical tensions, could lead to shortages in semiconductors, personal computers, and smartphones due to the AI boom. By 2026, Bain suggests that demand for upstream chip components, such as integrated circuit design and related intellectual property, may increase by 30% or more, putting pressure on manufacturers. The report also states that with capacities expanding from the current 50-200 megawatts to over 1,000 megawatts, the costs for large data centers could jump from $1-4 billion to $10-25 billion within five years. Bain stated: "These changes are expected to have a significant impact on the ecosystem supporting data centers, including infrastructure engineering, power generation, and cooling." Bain mentioned that companies are moving beyond the experimental stage and beginning to scale up Generative AI in their businesses. Small language models, similar to OpenAI's ChatGPT, but lightweight and efficient, may be favored by enterprises and governments concerned about costs and data privacy. Countries including Canada, France, India, Japan, and the United Arab Emirates are spending billions of dollars subsidizing their sovereign AI industries, investing in local computing infrastructure, and creating and training AI models with local data. However, Bain's Global Technology Practice Leader Anne Hoecker stated that building a successful sovereign AI ecosystem is both time-consuming and expensive.