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Editor’s take: According to the conversation in my communication bubble it seems that AI technologies are not popular. The AI evangelists who are most enthusiastic about AI are either vendors looking to cash in on this craze by selling us something AI related or companies that have created it and are pushing it down our throats.
According to a recent Gartner report, Spending for generative AI (GenAI), even though few organizations understand the benefits of this technology, will reach unprecedented levels by 2025. Experts believe that this “paradox” market trend will continue through 2025 and into 2026.
The global spending on GenAI is expected to reach $644 billion by 2025. This represents a 76.4 percent increase over 2024. This trend is despite the fact that the technology has a low error rate and is not very useful. Gartner’s VP Analyst John David Lovelock said foundational model providers invest billions to develop and enhance their solutions despite the growing concerns over the technology.
This year, internal projects with lofty goals will face increased scrutiny, Lovelock stated. Chief investment officers will likely opt for commercial, off-the-shelf solutions, while proof-of-concept experimentations and self-developed implementations should become the exception. GenAI prospects haven’t been as ambitious lately, but the technology should still significantly impact all IT spending this year.
Experts expect AI technologies to become integral to all kinds of business operations and consumer products. This forced integration will be primarily due to AI capabilities baked directly into consumer hardware, with servers, smartphones, and PCs absorbing 80 percent of the projected GenAI spending.
The developers have adopted a model of service that sounds like it was taken from Microsoft’s playbook in the past.
