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Worldwide generative AI (GenAI) spending is expected to total USD 644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by research and advisory firm Gartner. Generative AI is a machine-learning model such as ChatGPT that can be used to create original content — such as audio, images, text, software code and videos — in response to a user’s prompt or request.
Ambitious internal projects from 2024 linked to GenAI will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value, Lovelock added. “Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers,” he said. GenAI spending is poised for significant growth across all core markets and submarkets in 2025, Gartner said in the media release.
GenAI will have a transformative impact across all aspects of IT spending markets, suggesting a future where AI technologies become increasingly integral to business operations and consumer products. GenAI spending in 2025 will be driven largely by the integration of AI capabilities into hardware, such as servers, smartphones and PCs, with 80% of GenAI spending going towards hardware, the media release said..
