Gartner forecasts gen AI spending to hit $644B in 2025: What it means for enterprise IT leaders
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Summary
Spending on generative AI (AI that enables computers to develop new content) is set to surge to $644bn in 2025, according to a new report by Gartner, the analyst firm.
This represents a 76.4% year-on-year increase from 2024 and hardware, such as devices and servers, will account for 80% of this spend.
This growth is being attributed to the increasing use of AI amongst organisations with research suggesting 74% have already met or exceeded their generative AI initiatives.
However, the report also highlights a drop in the success of PoC projects with John Lovelock, Gartner VP, stating the main reasons for failure included insufficient ROI, poor quality data, and user resistance to changing how they work.
As a result of this, organizations are expected to pivot towards more commercially viable options as opposed to in-house developments.