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Spending on Cognitive/AI Systems to Reach $19.1 Billion in 2018- IDC

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 New spending guide revealed by International Data Corporation (IDC) shows that worldwide spending on cognitive and artificial intelligence (AI) systems will reach $19.1 billion in 2018, an increase of 54.2% over the amount spent in 2017.

 

With industries investing aggressively in projects that utilize cognitive/AI software capabilities, the International Data Corporation (IDC) Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide forecasts cognitive and AI spending will grow to $52.2 billion in 2021 and achieve a compound annual growth rate (CAGR) of 46.2% over the 2016-2021 forecast period.

 

David Schubmehl, research director, Cognitive/Artificial Intelligence Systems at IDC, said “Interest and awareness of AI is at a fever pitch.

 

“Every industry and every organization should be evaluating AI to see how it will affect their business processes and go-to-market efficiencies.

 

“IDC has estimated that by 2019, 40% of digital transformation initiatives will use AI services and by 2021, 75% of enterprise applications will use AI.

“From predictions, recommendations, and advice to automated customer service agents and intelligent process automation, AI is changing the face of how we interact with computer systems.”

 

Retail will overtake banking in 2018 to become the industry leader in terms of cognitive/AI spending.

 

Retail firms will invest $3.4 billion this year on a range of AI use cases, including automated customer service agents, expert shopping advisors and product recommendations, and merchandising for omni channel operations.

 

Much of the $3.3 billion spent by the banking industry will go toward automated threat intelligence and prevention systems, fraud analysis and investigation, and program advisors and recommendation systems.

 

Discrete manufacturing will be the third largest industry for AI spending with $2.0 billion going toward a range of use cases including automated preventative maintenance and quality management investigation and recommendation systems.

 

The fourth largest industry, healthcare providers, will allocate most of its $1.7 billion investment to diagnosis and treatment systems.

 

Marianne Daquila, research manager, Customer Insights & Analysis IDC, said “Enterprise digital transformation strategies are increasingly including multiple cognitive/artificial intelligence use cases,”

 

“Business transformation is occurring across all industries as successful companies embrace the array and potential impact of these solutions.

 

“Automated customer service agents, increased public safety, preventative maintenance, reduction of fraud, and improved healthcare diagnosis are just the tip of the iceberg driving spend today.

 

“With double-digit year-over-year spending growth forecast, IDC expects to see an increase in general use cases, as well as a refinement of industry-specific use cases.”

 

The cognitive/AI use cases that will see the largest spending totals in 2018 are: automated customer service agents ($2.4 billion) with significant investments from the retail and telecommunications industries; automated threat intelligence and prevention systems ($1.5 billion) with the banking, utilities, and telecommunications industries as the leading industries; and sales process recommendation and automation ($1.45 billion) spending led by the retail and media industries.

 

Three other use cases will be close behind in terms of global spending in 2018: automated preventive maintenance; diagnosis and treatment systems; and fraud analysis and investigation.

 

The use cases that will see the fastest spending growth over the 2016-2021 forecast period are: public safety and emergency response (75.4% CAGR), pharmaceutical research and discovery (70.5% CAGR), and expert shopping advisors and product recommendations (67.3% CAGR).

 

A little more than half of all cognitive/AI spending throughout the forecast will go toward cognitive software.

 

The largest software category is cognitive applications, which includes cognitively-enabled process and industry applications that automatically learn, discover, and make recommendations or predictions.

 

The other software category is cognitive platforms, which facilitate the development of intelligent, advisory, and cognitively enabled applications.

 

Industries will also invest in IT services to help with the development and implementation of their cognitive/AI systems and business services such as consulting and horizontal business process outsourcing related to these systems.

 

The smallest category of technology spending will be the hardware (servers and storage) needed to support the systems.

 

On a geographic basis, the United States will deliver more than three quarters of all spending on cognitive/AI systems in 2018, led by the retail and banking industries.

 

Western Europe will be the second largest region in 2018, led by retail, discrete manufacturing and banking.

 

The strongest spending growth over the five-year forecast will be in Japan (73.5% CAGR) and Asia/Pacific (excluding Japan and China) (72.9% CAGR). China will also experience strong spending growth throughout the forecast (68.2% CAGR).

 

“The latest iteration of the Cognitive/AI Spending Guide is a roadmap for the journey of organizational digital transformation through the use of AI, deep learning, and machine learning,”

 

“Organizations should be evaluating and starting to use AI throughout their systems and the Cognitive/AI Spending Guide is an indispensable resource in that effort,” added Schubmehl.

 

The Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide sizes spending for technologies that analyze, organize, access, and provide advisory services based on a range of unstructured information.

 

The spending guide quantifies the cognitive computing opportunity by providing data for more than 20 use cases across 16 industries in eight regions.

 

Data is also available for the related hardware, software, and services categories.

 

Unlike any other research in the industry, the detailed segmentation and timely, global data is designed to help suppliers targeting the market to identify market opportunities and execute an effective strategy.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Court Bans Kenyan Telcos from Recycling SIM Cards

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Kenya’s High Court has ruled that mobile phone numbers are not disposable assets, but constitutionally protected digital identifiers, striking at the core of a long-standing industry practice of arbitrarily reassigning inactive SIM cards without the owners’ consent.

Court Bans Kenyan Telcos from Recycling SIM Cards

In a landmark decision that could reshape telecom regulation and digital identity frameworks across Africa, sitting at Milimani Law Courts in Nairobi, Justice Lawrence Mugambi declared that reassigning a phone number without the original owner’s consent violates the right to privacy.

The ruling effectively elevates a SIM card into the same legal category as personal data tied to an individual’s private life.

At the heart of the ruling is Article 31 of the Constitution, which safeguards citizens from unnecessary disclosure of private information and interference with communications.

The court found that in today’s digital economy, a registered mobile number functions as a critical gateway to sensitive personal data, linking users to mobile money platforms like M-PESA, banking systems, email accounts, and social media profiles.

“When mobile digital identity is lost through reallocation or recycling without interrogating the reasons behind inactivity, it creates an avenue for unauthorised disclosure of delicate information,” the judgment stated.

The case, brought by Erastus Ngura Odhiambo, petitioner and former prisoner, challenged the routine telecoms practice of deactivating SIM cards after prolonged inactivity and reassigning them to new users.

Odhiambo lost access to his mobile phone number due to inactivity while serving his lengthy sentence.

He argued that the practice exposes individuals to serious risks, including misdirected financial transactions, intercepted one-time passwords, and unintended access to private communications.

The court agreed, highlighting how recycled numbers can result in strangers receiving confidential messages, authentication codes, and even being added to private messaging groups, effectively inheriting fragments of another person’s digital life.

Justice Mugambi also criticised the rigidity of SIM deactivation policies, calling them “arbitrary” for failing to consider legitimate reasons for inactivity such as incarceration, studying in restricted environments, or living abroad.

“Incarceration does not strip an individual of their constitutional rights to privacy and identity,” he noted.

For telecom operators, including Safaricom, the ruling introduces a significant compliance burden. The court outlined three strict conditions before any number can be reassigned.

Telcos must obtain informed and verifiable consent from the original owner, issue a public notice and conduct traceability efforts over a reasonable period.

More importantly, the court further directed that telecoms firms must implement technical safeguards to prevent data exposure to the new user.

The Office of the Attorney General has been given six months to translate these directives into enforceable regulations.

 


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Binance Earn: Simple Way to Earn Rewards on Idle Crypto Holdings

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Binance Earn offers cryptocurrency users an accessible way to generate rewards on idle digital assets without active trading or constant market monitoring.

Binance Earn: Simple Way to Earn Rewards on Idle Crypto Holdings

Binance Earn

As the crypto market matures, more holders seek productive uses for their assets rather than leaving them dormant in wallets. Binance addresses this through Binance Earn, where users allocate supported cryptocurrencies to various reward products for automatic yield generation.

The platform emphasises simplicity with a “set-and-forget” model: users select assets, pick a product, and rewards accrue passively in the background. This appeals especially to long-term holders aiming to enhance portfolio value over time without day-to-day involvement.

Binance Earn provides flexible options for instant liquidity access alongside fixed-term products for defined commitments, catering to diverse strategies and risk appetites.

“We’re seeing growing interest across Africa in ways to make crypto holdings more productive without active trading,” said Larry Cooke, Africa Head of Legal at Binance. “Simple, ‘set-and-forget’ solutions are becoming increasingly relevant as more users take a longer-term approach to digital assets.”

The feature reflects shifting user behaviour towards holding and gradual growth amid volatile markets, where reward rates fluctuate based on conditions, liquidity, and structures.

Users must assess risks and alignment with personal goals, as crypto remains volatile. Binance Earn positions itself as a key tool in Africa’s rising digital asset adoption, enabling hands-off participation in the ecosystem.


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New Gmail Scam Mimics Security Alerts to Steal User Data

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Cybersecurity researchers at Malwarebytes Labs have exposed a sophisticated new Gmail scam where fraudsters send fake Google security alerts via phishing emails, texts, and pop-ups, tricking users into a deceptive four-step verification process that harvests login credentials, GPS locations, contacts, and other sensitive data for account takeovers.

New Gmail Scam Mimics Security Alerts to Steal User Data

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Disguised as routine checkups, these alerts mimic Google’s official pages to create urgency, prompting victims to install malicious “security tools” that grant hackers real-time access to Gmail and linked services—Corey Donovan, president of Alta Technologies, warns legitimate checks never come unsolicited or demand downloads, urging users to close suspicious prompts immediately and verify via official Google account pages instead.

The scam’s rise amplifies risks during travel, where public Wi-Fi hotspots—especially “evil twin” fakes like slight misspellings of “Airport_Free_WiFi”—enable interception of banking details, emails, and malware installs; Donovan advises disabling auto-connect, using VPNs for HTTPS sites only, avoiding logins altogether, and crafting strong passwords with mixed characters plus two-factor authentication.

Shoulder surfing on public transport and outdated devices compound threats, as fraudsters glimpse screens or exploit unpatched vulnerabilities—keeping phones updated with post-update privacy reviews limits app access to location or commutes, while skipping work emails in view maintains confidentiality on the go.

Nigeria’s heavy reliance on digital banking and crypto heightens vulnerability, as scammers exploit rushed travellers; Donovan stresses: “Cybercriminals target busy airports and stations knowing guards drop—stay cautious, update devices, lock privacy, and never rush links to protect against these advanced breaches.”


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