June 2017, IDC #US42749217 White Paper A Trillion-Dollar Boost: The Economic Impact of AI on Customer Relationship Management Sponsored by: Salesforce John F. Gantz Gerry Murray David Schubmehl Dan Vesset Mary Wardley June 2017 IN THIS WHITE PAPER Artificial intelligence (AI)1, a technology almost as old as the computer industry itself, has come into widespread awareness with the advent of personal assistants and bots (Amazon's Alexa, Apple's Siri, Google's Assistant), image recognition (Facebook), personalized recommendations (Netflix, Amazon), and more. These innovations have been driven by a manifold increase in processing power, lower-cost hardware, and the exploding creation and availability of data. IDC's forecast for cognitive and AI systems calls for the global market to jump from $7.9 billion last year to $46.3 billion in 2020. This White Paper uses IDC market data, IDC's AI/CRM Economic Impact Survey of 1,028 organizations worldwide, and 20 years of IDC's economic impact modeling to forecast how AI will affect the global economy. It forecasts business revenue growth and job creation (or destruction) based on AI applied to customer relationship management (CRM) activities. In addition to the economic impact of AI on CRM as a broad category, it also includes an estimate of the economic impact attributable to Salesforce's customer base. EXECUTIVE SUMMARY  Extrapolating from survey responses and IDC's economic impact model, IDC calculates that AI associated with CRM activities will boost global business revenue from the beginning of 2017 to the end of 2021 by $1.1 trillion.  Net-new jobs associated with this revenue could, if respondent opinions bear out, reach more than 800,000 by 2021 in direct jobs, and 2 million if you add in indirect and induced jobs. This is a net-positive figure in that it includes an estimate of jobs lost to automation from AI.  Salesforce customers should account for $293 billion of the total aggregated revenue and more than 155,000 of those direct jobs by the year 2021.  IDC's AI/CRM Economic Impact Survey, 28% of all respondents said their organizations have already adopted AI and another 41% said they will adopt it within two years. In addition, 34% 1 IDC classifies AI as part of a constellation of cognitive system technologies – see Table 1 for a list. For the sake of brevity, we use the term AI to refer to them all in this White Paper. ©2017 IDC #US42749217 2 of Salesforce customers report they are AI adopters. The year 2018 will be a major year for AI adoption.  The adoption pattern mirrors IDC's forecasts that by 2018, 75% of enterprise and ISV development will include cognitive/AI or machine learning functionality in at least one application.2  Underpinning the adoption of AI, 46% of AI adopters report that more than 50% of their CRM activities are executed using the public cloud. Cloud vendors are expected to lead in the delivery of AI to customers by embedding AI into their applications. Economic Benefits Summary of AI Applied to CRM Figure 1 shows the summary of economic benefits as applied to CRM, calculated by IDC based on survey responses and its economic impact models. FIGURE 1 Worldwide Financial Improvement and Jobs from AI-Assisted CRM, 2017–2021 Source: IDC, 2017 AI: A Market Accelerator IDC analysts have an eye-opening forecast for AI adoption, as shown in Figure 2. In fact, in an IDC FutureScape document, written back in 2015, entitled IDC FutureScape: Worldwide Big Data and Analytics 2016 Predictions (IDC #259835, November 2015), IDC stated: Cognitive systems [AI] will be the next major disruption in the world of technology and will significantly impact businesses, healthcare, work, society, and our economies in 2 Excerpted from IDC FutureScape: Worldwide Analytics, Cognitive/AI, and Big Data 2017 Predictions (IDC #US41866016, November 2016). 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 0 300 600 900 1,200 2017 2018 2019 2020 2021 Net increase in jobsNet increase in financials ($B)Net increase in financials ($B) Net increase in jobs ©2017 IDC #US42749217 3 general. Cognitive systems will cause significant changes in the way that people get advice, make purchases, and do their daily work. FIGURE 2 Worldwide Spending on Cognitive/AI Systems Including Hardware/Software/Services, 2015–2020 Source: IDC, 2017 This growth in spending will come in all technology areas. In IDC's AI/CRM Economic Impact Survey, IDC found almost all technologies of interest, as shown in Table 1. Note that in the survey, we prefaced the questions on AI adoption by saying: "Artificial Intelligence (AI) comprises a set of technologies that use natural language processing, machine learning, knowledge graphs, and other tools to answer questions, discover insights, and provide recommendations. Systems using AI hypothesize and formulate possible answers based on available evidence, can be trained through the ingestion of vast amounts of content, and automatically adapt and learn from their mistakes and failures." 5 8 13 20 34 46 0 5 10 15 20 25 30 35 40 45 50 2015 2016 2017 2017 2019 2020 ($B) ©2017 IDC #US42749217 4 TABLE 1 AI Technology Choices (% of Respondents) Q. What type of AI are you planning to use or exploring? All Respondents AI Adopters Cognitive/AI system platforms 25 29 Machine learning 28 34 AI-based data preparation and enrichment tools 35 48 Machine vision/image recognition 26 31 Voice/speech recognition 30 41 Text analysis and natural language processing 27 34 Bots and virtual digital assistance solutions 21 32 Social media pattern analysis, sentiment analysis 33 35 Advanced numerical analysis (e.g., IoT streaming, machine logs) 31 41 Supporting technologies: ontologies, knowledge base curation, dialog management, Q&A processing, and so forth 38 40 n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 While it is true that respondents were being asked specifically about their potential use of AI in CRM activities, these activities nonetheless cover a large spectrum of activity and touch almost all facets of an enterprise. Table 2 shows the way we broke down CRM and, for AI adopters, which activities fell into respondents' top 4 for adoption. ©2017 IDC #US42749217 5 TABLE 2 Catalog of CRM Activities: Top 4 for Adoption (% of Respondents) Q. Which categories of CRM activity do you think AI could benefit the most? AI Adopters Corporate marketing, branding, advertising 39 Product or service marketing 39 Marketing operations/field marketing 39 Customer support 43 Digital commerce 40 Customer analytics 38 Customer influenced product or service design 40 Product or service pricing, finance 38 Customer billing, inventory, logistics, and fulfilment support 41 Partner management 41 n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 It is obvious that each AI use has its specific adherents. Most enterprises will adopt AI in a variety of CRM areas. The AI Adoption Curve AI is still at the beginning of its "S curve" of adoption, but the respondents we surveyed expect this year (2017) and the next (2018) to be watershed years — as planning and piloting turn into implementation. In fact, more than 60% expect to have either projects or pilots in place this year, and 55% expect to have AI implementations in place by 2018. Figure 3 shows how the respondents' plan-pilot-implement trajectory works out over the next five years, with expectations that some of those with no plans today will join the fold in the outer years. ©2017 IDC #US42749217 6 FIGURE 3 Survey Respondents' AI Adoption Plans, 2016–2021 n = 1,028 total Source: IDC's AI/CRM Economic Impact Survey, 2017 This adoption wave mirrors that of IDC's cognitive/AI systems forecast (refer back to Figure 1), which grows by a factor of 9 from 2015 to 2020. The adoption forecast for implemented AI projects grows by a factor of 10 from 2016 to 2021. Is this adoption profile realistic? IDC believes it is, as analysts are reporting that vendor investment in embedded AI for enterprise applications has picked up considerably, even just in the past six months. By offering embedded AI, technology vendors — and especially cloud solution vendors — can make implementation a near-automatic event for most customers. The survey conducted for this study indicates that enterprises are ready to take advantage of AI availability when it appears. In the document referenced in the Executive Summary section, IDC forecasts that 2018 will be a watershed year for AI adoption in general. In that same document, IDC predicts that "by 2018, new cloud pricing models will emerge for specific analytics workloads, contributing to five times higher growth in spending on cloud versus on-premise ©2017 IDC #US42749217 7 analytics solutions." This is more corroboration for the adoption timeline predicted by survey respondents. The AI Economic Impact Because AI is still early in adoption, all predictions come with a caveat that they rely on current opinions of respondents and expectations for software, IT, cloud computing, and economic growth that may be superseded by events. On the other hand, IDC has been forecasting IT markets for more than 50 years, many of them at the same place on the adoption curve as AI. This includes the internet, enterprise ERP and CRM, social media, smartphones, business analytics, and many others. In addition, respondents surveyed assessed their own confidence on their estimates of the financial improvement AI could provide for CRM activities. In general, they rated themselves 3.5 on a scale of 1–5 (5 = very confident). Those that were already AI adopters rated themselves 3.9.3 And early AI adopters in the news, such as USAA (fraud detection), GE (jet engine blade quality control), and Under Armor (fitness optimization) are positive on early results. To develop an estimate of the economic impact AI technologies could have on enterprises adopting them to improve their CRM activities, IDC relied on:  Macroeconomic information on business revenue in a country (2016 forecast to 2021) and the basic makeup of business expenses by major function (customer support, marketing and sales, production, etc.)  IDC analysts' estimates of the percentage of revenue (and expenses) that might be affected by CRM activities by category  Survey results on how much AI could improve CRM activities in the first year of AI implementation, and what this improvement could mean in terms of efficiencies for a company in cost savings and new potential revenue  An economic impact model that pulls all the underlying data together and forecasts the results out to 2021 (The model is based on IDC's Economic Impact of IT model, which has been updated yearly since 2002. It includes IT spending by 54 countries, GDP and population estimates and forecasts, revenue per employee, and ratios of IT spend to GDP.) Table 3 shows the results of the IDC economic modeling and some of the underlying assumptions. 3 One could argue that AI adopters rate themselves more highly because they are already invested, but IDC believes it is more likely because they have hands-on experience with the technology. ©2017 IDC #US42749217 8 TABLE 3 Forecast Results — AI Impact 1. Results are projected from surveys and rely on estimates made by respondents on the expected financial improvements in key categories of AI-assisted customer relationship management activities. The forecast assumes that these estimates are correct. 2. Financial estimates are based on estimates of "first year" improvement from full AI implementations; forecasts are extrapolated across expected migration from planning to pilot to implemented projects. 3. The improvement forecast is of categories of activity (e.g., corporate marketing, digital commerce, and customer analytics). They are not estimates of ROI for the AI software. They rely on conservative estimates by IDC of the extent to which each of these entities might affect company revenue, expenses, or productivity. They also rely on estimates of the penetration of software in customer relationship management activities. 4. Net-new jobs created are based on the ratio of new revenue to jobs required to support that revenue. They assume that 50% of the net-new revenue will support increases in labor and the rest will go for capital and other operating expenses that may replace jobs lost to automation; IDC understands that there is significant debate about the long-term impact of AI on jobs but presents the data here as based on opinions of surveyed respondents. 5. By way of comparison, IDC forecasts that the worldwide market for cognitive/AI systems — including software, hardware, and services — will surpass $46 billion in 2020; the worldwide CRM software (only) market is expected to surpass $44 billion by 2020. 6. The estimate of the economic impact of AI in customer management among Salesforce customers relies on survey results and modeling that allocates Salesforce's share of the economy by its share of the CRM software market. Worldwide financial improvement from AI in customer management activities 2017 2018 2019 2020 2021 Five-Year Sum Increased revenue ($B) 26 112 154 196 237 726 Lowered expenses ($B) 9 41 58 72 85 265 Improved productivity ($B) 4 19 26 33 39 121 Worldwide: increased revenue, lowered expenses, improved productivity ($B) 40 172 238 301 362 1,112 % of business revenue 0.0 0.1 0.1 0.2 0.2 0.1 Worldwide net increase in direct jobs 50,287 315,079 166,013 148,704 143,651 823,734 Worldwide net increase in indirect/induced jobs 75,203 471,819 254,784 228,582 219,859 1,250,247 Worldwide net increase in direct and indirect/induced jobs 125,490 786,897 420,797 377,286 363,510 2,073,980 Source: IDC's AI/CRM Economic Impact Survey, 2017 ©2017 IDC #US42749217 9 While the aggregate numbers look large — billions to a trillion — note that the net figure is still just a small increase to global revenue — 0.13%. This reflects the early stages of the AI revolution on global businesses. For those who still believe the number seems large, consider what is entailed in an IT implementation. The spending on IT software, services, and hardware itself is often small compared with spending on staff (IT and operational), operations, non-IT capital goods, and more. In fact, spending on external IT — which now permeates most enterprises in the world — represents less than 1% of the world's business revenue and generally less than 5% in even the most IT-rich enterprises. IDC research shows that even in cloud-based solutions, any single implementation will require additional spending — on other cloud services, consulting, networking, security, and more. In short, IT represents a leveraged investment — paying back many times its base costs. A new technology, like AI, could be even more leveraged. IDC itself classifies cognitive systems/AI as an "innovation accelerator" on its website. Some of the ways AI is expected to impact CRM activities are:  Speeding up sales cycles  Improving lead generation and qualification  Solving customer support problems faster  Helping companies improve brand campaigns and recognition  Lowering costs of support calls while increasing resolution rates  Lowering the cost of recruiting employees and partners  Increasing revenue from optimized product marketing  Optimizing pricing  Optimizing distribution logistics  Preventing loss through fraud detection What about the impact of AI on jobs? IDC is well aware there is significant debate about the long-term impact of AI on jobs and presents the forecast here as based on the opinions of surveyed respondents. It also represents a conservative view of how the additional revenue from the forecast financial improvements will be put to use. The forecast embodies an assumption that AI will lead to net-positive financial benefits, which will drive job growth. Some roles may be eliminated, and others will be created or enhanced, not unlike the change in jobs in IT departments during the advent of the cloud.4 4 Students of the subject may wish to view this article in The Wall Street Journal, published December 11, 2016, entitled “Automation Can Create More Jobs” at www.wsj.com/articles/automation-can-actually-create-more- jobs-1481480200. A countering view can be found in an article in The New York Times, published March 17, 2017, entitled “Evidence that Robots are Winning the Race for U.S. Jobs” at www.nytimes.com/2017/03/28/upshot/evidence-that-robots-are-winning-the-race-for-american- jobs.html?_r=1 ©2017 IDC #US42749217 10 The Salesforce Economic Impact With Salesforce as the market leader in CRM software in general and cloud-based CRM in particular, and as a proponent of AI-assisted solutions, its customers should drive a noticeable portion of the benefits and jobs coming from AI in CRM. By design, the survey conducted for this study included more than 400 Salesforce customers, enough to allow us to project their economic impact. Table 4 shows the results of the IDC economic modeling. TABLE 4 The Economic Impact of AI-Assisted Customer Relationship Management of Salesforce Customers, 2017–2021 Worldwide Financial Improvement from AI in Customer Management Activities 2017 2018 2019 2020 2021 Five-Year Sum Increased revenue ($B) 7 29 41 53 66 195 Lowered expense ($B) 2 10 14 18 23 68 Improved productivity ($B) 1 5 6 8 10 30 Worldwide: increased revenue, lowered expenses, improved productivity ($B) 10 43 61 79 99 293 % of business revenue 0.0 0.1 0.2 0.2 0.2 0.2 Worldwide net increase in direct jobs 9,569 55,814 29,539 28,821 31,554 155,298 Worldwide net increase in indirect/induced jobs 14,310 83,580 45,335 44,303 48,295 235,822 Worldwide net increase in direct and indirect/induced jobs 23,879 139,394 74,874 73,124 79,849 391,121 Note: Totals may not be exact due to rounding. The survey included 429 Salesforce customers. Source: IDC's AI/CRM Economic Impact Survey, 2017 Specific Use Case Adoptions In addition to surveying about AI adoption to support the various components of CRM, the survey also polled about some specific use cases of AI. Figure 4 shows the percentage of respondents who said they use or are planning to use each case. ©2017 IDC #US42749217 11 FIGURE 4 Specific AI Use Cases n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 Perhaps the strongest conclusion that can be drawn from Figure 4 is that those using and planning to use AI are doing so in many different ways. And those closest to implementation are doing so even more so. These forward-looking companies are planning, piloting, implementing, optimizing, and improving. The Nature and Attitudes of AI Adopters IDC's AI/CRM Economic Impact Survey of 1,028 enterprises in Australia, Canada, France, Germany, Japan, the United Kingdom, and the United States probed not only estimates of value creation from AI but also behaviors and attitudes of those knowledgeable about CRM in their enterprises and the future of AI in them. Some stats on the respondents themselves:  The average enterprise polled had 1,966 employees; AI adopters (28% of the sample) had 2,521. 87 61 64 68 75 83 87 80 83 74 55 57 51 47 59 61 63 66 0 10 20 30 40 50 60 70 80 90 100 Email marketing Credit risk scoring Fraud detection Cross-selling and upselling Chatbots for customer service or product selection Customer service case classification/routing Sales forecasting Sales opportunity scoring Sales and marketing lead scoring (% of respondents) All respondents AI adopters ©2017 IDC #US42749217 12  Respondents were polled from a cross section of industries, with none accounting for more than 20% of the total.  42% of the sample were Salesforce customers, which accounted for 50% of AI adopters.  29% of the total sample said that 50% or more of their CRM activities were public cloud based; 46% of AI adopters said so.  77% of the total sample said they were either decision makers about AI adoption or on a team that made those decisions; 84% of AI adopters said so.  87% of the total sample were in management positions or higher.  When asked about potential data sources for the AI systems, respondents rated data from their CRM systems highest (not surprisingly) and data from third parties lowest. Stack-ranked in the middle was data from ERP systems, data from data warehouses, and data from social media. But all were seen as potential data sources. The respondents also tended to be positive on AI. In one question, they rated their agreement with several statements about AI — on a scale of 1 to 6, with 6 being the highest level of agreement — as shown in Figure 5. FIGURE 5 Attitudes on AI n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 ©2017 IDC #US42749217 13 In another question, they reported their opinions of AI on jobs as shown in Figure 6. FIGURE 6 Attitudes on AI and Jobs n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 Note that AI adopters are much more bullish about the net impact of AI on labor. ESSENTIAL GUIDANCE Lessons from the Data and a Call to Action  It is clear from IDC's forecasts — and the survey for this project — that AI adoption is about to begin in earnest.  As with the adoption of any "innovation accelerator" technology, early adopters and fast followers will gain early, critical experience, which should lead to a competitive advantage.  The prevalence of cloud-based AI solutions in the CRM space expresses a strong relationship — if not symbiosis — between enterprises and their cloud providers. This, in turn, puts a responsibility on the vendor to be trusted and innovative and on the enterprise to manage the relationship at a high level.  Further speaking to cloud solutions, IDC analysts believe that they may lead the way in delivering AI to customers, often embedded into solutions and user interfaces, making adoption easy as an add-on to existing applications and perhaps even free at the entry level. 0 10 20 30 40 50 60 All respondents AI users (% respondents)AI will create a net increase in jobs AI will create a net decrease in jobs The impact will be neutral There is no way to tell ©2017 IDC #US42749217 14  The choices listed and rated throughout the survey indicate that this year and the next few following will see an incredible amount of experimentation with AI. Enterprises for which such IT and operational experimentation is second nature will reap benefits others won't. This need for organizations to deal with disruption and change can be seen in the question asked of respondents on how AI would impact their organizations that had the highest rating for level of agreement (4.7 worldwide, 4.9 AI adopters, where 6 was the highest level). This was the statement, which can be interpreted as a word to the wise: METHODOLOGY To develop an estimate of the economic impact AI technologies could have on enterprises adopting them to improve their CRM activities, IDC relied on:  Macroeconomic information on business revenue in a country (2016 forecast to 2021), based on third-party GDP, gross output, and employment estimates  IDC estimates of IT penetration of businesses, based on more than 15 years of analysis of and publications on the economic impact of IT on local economies and also estimates of the basic makeup of business expenses by major function (customer support, marketing and sales, production, etc.) to allocate benefits across enterprises by function  IDC analysts' estimates of the percentage of revenue (and expenses) that might be affected by CRM activities by category based on CRM's share of IT impact on enterprises  Survey results on how much AI could improve CRM activities in the first year of AI implementation and the timeline for adoption  An economic impact model that pulls all the underlying data together and forecasts the results out to 2021 (The model is based on IDC's Economic Impact of IT model, which has been updated yearly since 2002. It includes IT spending by 54 countries, GDP and population estimates and forecasts, revenue per employee, and ratios of IT spend to GDP.)  IDC market forecasts, including for AI and cognitive systems, CRM software, cloud computing, Salesforce market share, and many others  Key assumptions behind the model (refer back to Table 3) (In short, the forecast of economic impact is based on the assumptions made by respondents of AI adoption plans and the benefit gained during the first full year of implementation.) IDC's AI/CRM Economic Impact Survey Early in 2017, IDC surveyed enterprises having more than 10 employees with responses by country, as shown in Table 5. Implementing AI could change our organization's culture, workforce, and operations entirely ©2017 IDC #US42749217 15 TABLE 5 Survey Respondents Total AI Adopters Salesforce Customers United States 408 151 212 Canada 106 29 41 Australia 100 24 45 Japan 100 11 27 France 109 35 34 Germany 101 19 27 United Kingdom 104 23 43 Total 1,028 292 429 n = 1,028 total (292 current AI adopters) Source: IDC's AI/CRM Economic Impact Survey, 2017 Characteristics of the respondents have been previously discussed in the document. The survey was conducted online (supplemented by phone when necessary) of executives who were familiar with their enterprises' CRM activities and felt competent to have an informed opinion on how AI might affect their organizations. Country-Level Data Table 6 shows the results in terms financial improvement and net jobs created by the countries surveyed. It also includes the estimate for the rest of the world used to come up with the global totals. ©2017 IDC #US42749217 16 TABLE 6 The Economic Impact of AI-Assisted Customer Relationship Management by Country Surveyed — Worldwide Financial Improvement from AI in Customer Management Activities, 2017–2021 2017 2018 2019 2020 2021 Five-Year Sum United States Increased revenue ($B) 15 63 84 105 128 394 Lowered expenses ($B) 5 22 30 37 44 139 Improved productivity ($B) 2 10 14 17 20 63 Increased revenue, lowered expenses, improved productivity ($B) 22 95 127 159 192 596 % of business revenue 0.0 0.2 0.3 0.3 0.4 0.2 Net increase in direct jobs 19,022 122,088 52,854 52,226 52,774 298,964 Net increase in indirect/induced jobs 25,641 165,820 74,073 73,193 73,961 412,689 Net increase in direct and indirect/induced jobs 44,663 287,908 126,927 125,420 126,734 711,653 Canada Increased revenue ($B) 1 3 4 6 7 21 Lowered expenses ($B) 0 1 2 2 2 7 Improved productivity ($B) 0 0 1 1 1 3 Increased revenue, lowered expenses, improved productivity ($B) 2 5 7 8 10 32 % of business revenue 0.1 0.1 0.2 0.2 0.3 0.2 Net increase in direct jobs 2,213 7,860 3,787 4,079 3,720 21,660 Net increase in indirect/induced jobs 3,456 12,416 6,217 6,696 6,106 34,890 Net increase in direct and indirect/induced jobs 5,669 20,276 0,004 10,775 9,825 56,550 Australia Increased revenue ($B) 1 3 4 5 6 19 Lowered expenses ($B) 0 1 1 2 2 6 Improved productivity ($B) 0 1 1 1 1 4 Increased revenue, lowered expenses, improved productivity ($B) 1 4 6 8 9 29 % of business revenue 0.0 0.1 0.2 0.2 0.3 0.2 ©2017 IDC #US42749217 17 TABLE 6 The Economic Impact of AI-Assisted Customer Relationship Management by Country Surveyed — Worldwide Financial Improvement from AI in Customer Management Activities, 2017–2021 2017 2018 2019 2020 2021 Five-Year Sum Net increase in direct jobs 899 6,910 3,044 3,124 2,738 16,714 Net increase in indirect/induced jobs 1,835 14,300 6,624 6,798 5,959 35,518 Net increase in direct and indirect/induced jobs 2,734 21,210 9,668 9,922 8,698 52,231 Japan Increased revenue ($B) 2 8 12 15 18 55 Lowered expenses ($B) 1 4 5 7 8 24 Improved productivity ($B) 0 2 3 3 4 12 Increased revenue, lowered expenses, improved productivity ($B) 3 13 20 25 30 91 % of business revenue 0.0 0.1 0.1 0.2 0.2 0.1 Net increase in direct jobs 3,696 26,881 16,586 12,297 11,902 71,364 Net increase in indirect/induced jobs 4,495 32,915 20,923 15,512 15,014 88,859 Net increase in direct and indirect/induced jobs 8,191 59,797 37,509 27,809 26,916 160,223 France Increased revenue ($B) 1 4 6 8 10 30 Lowered expenses ($B) 1 2 3 4 4 14 Improved productivity ($B) 0 1 1 2 2 6 Increased revenue, lowered expenses, improved productivity ($B) 2 7 10 13 16 50 % of business revenue 0.0 0.1 0.2 0.2 0.2 0.2 Net increase in direct jobs 2,603 12,022 7,122 6,624 6,548 34,918 Net increase in indirect/induced jobs 4,404 20,534 12,164 11,313 11,183 59,599 Net increase in direct and indirect/induced jobs 7,006 32,556 19,286 17,937 17,731 94,516 Germany Increased revenue ($B) 1 6 8 11 13 40 Lowered expenses ($B) 0 2 3 4 5 15 ©2017 IDC #US42749217 18 TABLE 6 The Economic Impact of AI-Assisted Customer Relationship Management by Country Surveyed — Worldwide Financial Improvement from AI in Customer Management Activities, 2017–2021 2017 2018 2019 2020 2021 Five-Year Sum Improved productivity ($B) 0 1 1 2 2 7 Increased revenue, lowered expenses, improved productivity ($B) 2 9 13 18 21 62 % of business revenue 0.0 0.1 0.1 0.2 0.2 0.1 Net increase in direct jobs 4,138 17,632 10,226 11,408 7,801 51,204 Net increase in indirect/induced jobs 6,538 28,100 16,924 18,879 12,911 83,353 Net increase in direct and indirect/induced jobs 10,675 45,732 27,151 30,287 20,712 134,557 United Kingdom Increased revenue ($B) 1 6 8 10 12 37 Lowered expenses ($B) 0 2 3 3 4 13 Improved productivity ($B) 0 1 1 1 2 5 Increased revenue, lowered expenses, improved productivity ($B) 2 9 12 15 18 55 % of business revenue 0.0 0.1 0.2 0.2 0.3 0.2 Net increase in direct jobs 2,690 15,274 7,327 6,770 5,979 38,040 Net increase in indirect/induced jobs 4,792 27,474 13,753 12,708 11,223 69,950 Net increase in direct and indirect/induced jobs 7,482 42,749 21,080 19,478 17,202 107,990 ROW Increased revenue ($B) 4 19 28 36 43 130 Lowered expenses ($B) 1 7 10 13 16 47 Improved productivity ($B) 1 3 5 6 7 22 Increased revenue, lowered expenses, improved productivity ($B) 6 29 43 55 66 198 % of business revenue 0.0 0.0 0.1 0.1 0.1 0.0 Net increase in direct jobs 15,026 106,412 65,066 52,176 52,189 290,869 Net increase in indirect/induced jobs 24,042 170,259 104,106 83,482 83,502 465,391 ©2017 IDC #US42749217 19 TABLE 6 The Economic Impact of AI-Assisted Customer Relationship Management by Country Surveyed — Worldwide Financial Improvement from AI in Customer Management Activities, 2017–2021 2017 2018 2019 2020 2021 Five-Year Sum Net increase in direct and indirect/induced jobs 39,069 276,670 169,173 135,658 135,691 756,260 Worldwide Increased revenue ($B) 26 112 154 196 237 726 Lowered expenses ($B) 9 41 58 72 85 265 Improved productivity ($B) 4 19 26 33 39 121 Worldwide: increased revenue, lowered expenses, improved productivity ($B) 40 172 238 301 362 1,112 % of business revenue 0.0 0.1 0.1 0.2 0.2 0.1 Worldwide net increase in direct jobs 50,287 315,079 166,013 148,704 143,651 823,734 Worldwide net increase in indirect/induced jobs 75,203 471,819 254,784 228,582 219,859 1,250,247 Worldwide net increase in direct and indirect/induced jobs 125,490 786,897 420,797 377,286 363,510 2,073,980 Note: Totals may not match as a result of rounding. Source: IDC's AI/CRM Economic Impact Survey, 2017 About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact- based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. 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