Gartner to CIOs: Prepare to spend more money on generative AI
- Gartner forecasts worldwide generative AI spending to reach $644 billion in 2025, a 76.4% increase from 2024.
- Expectations for GenAI capabilities are declining due to high failure rates in initial proof-of-concept work and dissatisfaction with current GenAI results, as stated by Gartner's John-David Lovelock.
- This growth is primarily driven by vendor investments and the integration of AI capabilities into hardware, which includes servers, smartphones, and PCs, with 80% of GenAI spending allocated to hardware.
- Lovelock stated that CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers, as ambitious internal projects from 2024 face increased scrutiny in 2025.
- The market's growth is heavily influenced by the increasing prevalence of AI-enabled devices, expected to dominate the consumer device market by 2028, even though consumers aren't necessarily seeking these features.
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Gartner projects $644 billion in 2025 AI spending, but few understand GenAI's actual value
A recent Gartner analysis reports that spending on generative AI (GenAI) will grow to unprecedented levels in 2025, even though very few organizations understand how this technology can help their businesses or profit prospects. Experts believe this market "paradox" trend will persist through 2025 and 2026.Read Entire Article
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RocketNewsGartner forecasts gen AI spending to hit $644B in 2025: What it means for enterprise IT leaders
Gartner forecasts large growth in global AI spending as enterprises shift focus to commercial tools away from custom projects that often fail.
GenAI spend growing despite declining expectations
Expectations for GenAI capabilities are declining but despite this, worldwide generative AI spending will total $644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by market research firm Gartner. “Expectations for GenAI’s capabilities are declining due to high failure rates in initial proof-of-concept work and dissatisfaction with current GenAI results,” says John-David Lovelock, VP at Gartner. “Despite this, foundati…
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