Global spending on generative AI will increase by 76 percent compared to last year, says Gartner.
Generative AI is becoming increasingly common in businesses. According to a new forecast by Gartner, global spending on generative AI will rise to 644 billion dollars this year, an increase of no less than 76.4 percent compared to last year.
Internal AI Projects Under Pressure
Although generative AI is often presented as the future, it still often has high failure rates and disappointing results. AI models continue to make mistakes and hallucinate. Therefore, many internal AI projects from last year will be taken out of cold storage again in 2025.
Gartner analyst John-David Lovelock states that CIOs will invest less in proof-of-concepts. These investments will instead go to ready-made solutions from software vendors, as they provide faster results and involve fewer risks.
AI in Hardware Becomes Most Important
80 percent of those expenditures will go towards integrating AI into hardware such as servers, smartphones, and PCs. But software and services will also get some fresh billions: 180.6 billion dollars for servers, 398.3 billion dollars for AI devices, 37.1 billion dollars for software, and 27.7 billion dollars for services
Gartner expects manufacturers to rapidly incorporate AI functionality into their devices. “By 2028, AI features would be built into almost every consumer device as standard, and consumers are essentially forced to buy them,” says Lovelock.
AI is coming regardless. Companies (and consumers) will have to get used to it, whether they want to or not.