According to Bain & Company, the artificial intelligence industry needs to generate $4.2 trillion in new revenue by 2031. The report states that $6 trillion will be required to meet computing power demands. Of this amount, existing AI products are capable of generating up to $1.8 trillion, leaving a significant gap of $4.2 trillion. In Bain's 7th annual Global Technology Report, published on Tuesday, it is mentioned that annual AI infrastructure spending could reach $1.5 trillion by 2031. These expenditures cover the creation of new data centers and computing power, as well as the upgrading of existing equipment, including graphics processors, memory, and networking equipment. Bain suggests that capital investments will account for about 25% of the industry's total revenue, requiring the AI market to reach $6 trillion annually.
Subscriptions to AI services and advertising could bring in $200 to $400 billion by 2031. AI applications in business, such as software development and customer service, could add $1 to $1.4 trillion. Bain highlights four categories that could help close the remaining gap. Advertising in chatbots and AI search could provide an additional $100 to $200 billion for model providers. Autonomous vehicles, trucks, drones, and industrial automation represent a $400 billion opportunity. Physical AI, including robotics and digital twins, could be worth about $900 billion. The fourth category covers new applications, such as drug discovery for rare diseases, 24/7 mental health support, and next-generation materials.
Bain also estimates that capital investments by companies such as Microsoft, Google, Amazon, Meta, and Oracle will reach $780 billion by 2026, nearly five times the level of three years ago. The capacity of leading AI data centers is expected to approach 1 gigawatt, with many nearing 2 gigawatts by 2027, and Bain forecasts 9-gigawatt campuses by the end of the decade. The report cites data from Epoch AI indicating that the size and cost of data centers double approximately every 12-16 months.
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