US EditionGartner 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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VentureBeatGartner forecasts gen AI spending to hit $644B in 2025: What it means for enterprise IT leaders
Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More Make no mistake about it, there is a lot of money being spent on generative AI in 2025. Analyst firm Gartner released a new report today forecasting that global gen AI spending will hit $644 billion in 2025. That figure represents a 76.4% year-over-year increase over gen AI spending in 2024. Gartner’s report joins a cho…
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