AI Expenses Could Increase to $13 Billion by 2028: Variety

AI spendings are expected to balloon up to $13 billion by 2028 as the tech industry continues to jump into the AI train, media analysts predicted during Variety's "Series Mania" on Thursday.

According to research directors from Omdia and Plum Research, companies, particularly those in the postproduction sector, are predicted to dip more into AI technology for more efficient operations.

The researchers, however, pointed out that companies are more apt to use assistive AI technology rather than generative models touted by many AI firms.

As of writing, AI development and integration in workplaces remain a costly venture for many companies, at least much more expensive than hiring actual human workers.

This aligns with Omdia's and Plum Research's assessment, confirming that AI "will not replace humans" but rather "humans that know how to use AI will replace those who don't."

AI Fears Continue to Grow Amid Increasing Layoffs

Although most research groups are assuring people that AI will not immediately replace people in workplaces, anxiety about the technology remains prevalent amid ongoing layoffs in the tech industry.

Industry layoff watchdog Layoff.fyi reported over 50,800 employees have already been dismissed in 2024 alone as more companies are noted to increase AI use in its operations, including in roles previously held by human workers.

The International Monetary Fund earlier predicted that over 40% of the total jobs worldwide could be "exposed" to the AI impact.

The numbers increase up to 60% in developed countries, like the US and the UK, where AI development is more prominent

Tech Leaders Still Insists AI Venture is a Good Investment

Despite concerns about the accessibility and feasibility of the technology in the near future, many tech giants continue to promote their AI services to companies as a way to make money in the long run.

Amazon, Google, Microsoft, and Meta have been notable in pushing their AI technologies across their platforms as a way of "winning new customers and helping drive new benefits and productivity gains."

In some cases, the companies have been touting their new AI technology into deep learning machines, an assistive AI technology long present and has been used for algorithms.