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Trade Arabia
03-04-2025
- Business
- Trade Arabia
Global GenAI spending to hit $644bn in 2025, says report
Worldwide generative AI (GenAI) spending is expected to hit $644 billion in 2025, thus recording a 76.4% increase from 2024, according to a report by Gartner. "Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results," remarked John-David Lovelock, VP Analyst at Gartner. "Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026," he stated. According to him, GenAI spending is poised for significant growth across all core markets and submarkets in 2025. It 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. "Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value," remarked Lovelock. "Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers," he added. According to Lovelock, this spend 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 market's growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028," he noted.
Zawya
03-04-2025
- Business
- Zawya
Global GenAI spending to hit $644bln in 2025, says report
Worldwide generative AI (GenAI) spending is expected to hit $644 billion in 2025, thus recording a 76.4% increase from 2024, according to a report by Gartner. "Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results," remarked John-David Lovelock, VP Analyst at Gartner. "Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026," he stated. According to him, GenAI spending is poised for significant growth across all core markets and submarkets in 2025. It 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. "Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value," remarked Lovelock. "Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers," he added. According to Lovelock, this spend 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 market's growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028," he noted. "However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them," he added.- TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
TECHx
02-04-2025
- Business
- TECHx
Global Generative AI Spending to Soar to $644 Billion in 2025
Global Generative AI Spending to Soar to $644 Billion in 2025 News Desk - Share Worldwide spending on generative AI (GenAI) is expected to reach $644 billion in 2025, a 76.4% increase from 2024, according to Gartner. Despite the rapid growth, expectations for GenAI are cooling due to high failure rates in early proof-of-concept (POC) projects and dissatisfaction with current results. John-David Lovelock, Distinguished VP Analyst at Gartner, explains that while foundational model providers continue investing billions to enhance AI capabilities, many businesses are rethinking their strategies. CIOs are now shifting from experimental AI projects to commercial off-the-shelf solutions for better predictability and business value. Instead of building their own models, companies will increasingly rely on AI features offered by existing software providers. GenAI spending will rise across all key segments, with the biggest investments in hardware. Servers, smartphones, and PCs with built-in AI capabilities will drive most of the growth. By 2028, AI-powered devices are expected to dominate the consumer market. However, consumer demand for AI features remains lukewarm. Lovelock notes that manufacturers are embedding AI into products as a standard feature, leaving consumers with little choice but to adopt it. Gartner's forecast is based on extensive analysis of sales data from over 1,000 vendors worldwide. The latest research, Forecast Alert: GenAI IT Spending, 2023-2028, Worldwide, provides insights into emerging trends, market shifts, and investment strategies.
Channel Post MEA
01-04-2025
- Business
- Channel Post MEA
Gartner: GenAI Spending To Reach $644 Billion In 2025
Worldwide generative AI (GenAI) spending is expected to total $644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by Gartner, Inc. 'Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results,' said John-David Lovelock, Distinguished VP Analyst at Gartner. 'Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026. 'Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value. Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers,' said Lovelock. GenAI spending is poised for significant growth across all core markets and submarkets in 2025 (see Table 1). 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. AI Capable Consumer Devices to Drive GenAI Spending 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 market's growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028,' said Lovelock. 'However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them.' 0 0
Yahoo
31-03-2025
- Business
- Yahoo
Gartner Forecasts Worldwide GenAI Spending to Reach $644 Billion in 2025
CIOs Must Prepare for Rising GenAI Spending in 2025, Fueled by Better Foundational Models and Growing Demand for AI Products STAMFORD, Conn., March 31, 2025--(BUSINESS WIRE)--Worldwide generative AI (GenAI) spending is expected to total $644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by Gartner, Inc. "Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results," said John-David Lovelock, Distinguished VP Analyst at Gartner. "Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026. "Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value. Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers," said Lovelock. GenAI spending is poised for significant growth across all core markets and submarkets in 2025 (see Table 1). 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. Table 1. Worldwide GenAI Spending Forecast (Millions of U.S. Dollars) 2024 Spending 2024 Growth (%) 2025 Spending 2025 Growth (%) Services 10,569 177.0 27,760 162.6 Software 19,164 255.1 37,157 93.9 Devices 199,595 845.5 398,323 99.5 Servers 135,636 154.7 180,620 33.1 Overall GenAI 364,964 336.7 643,860 76.4 Source: Gartner (March 2025) AI Capable Consumer Devices to Drive GenAI Spending 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 market's growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028," said Lovelock. "However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them." Gartner's GenAI spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of GenAI products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast. The Gartner GenAI spending forecast delivers a unique perspective on GenAI spending across the hardware, software and IT services segments. These reports help Gartner clients understand market opportunities and challenges. The most recent GenAI spending forecast research is available to Gartner clients in "Forecast Alert: GenAI IT Spending, 2023-2028, Worldwide." Additional leadership trends will be presented during Gartner IT Symposium/Xpo, the world's most important conference for CIOs and other IT executives. Gartner analysts and attendees will explore the technology, insights and trends shaping the future of IT and business, including AI, business transformation, cybersecurity, customer experience, data analytics, executive leadership and more. Follow news and updates from the conferences on X using #GartnerSYM, and on the Gartner Newsroom. Upcoming dates and locations for Gartner IT Symposium/Xpo include:September 8-10, 2025 | Gold Coast, Australia October 20-23, 2025 | Orlando, FL October 28-30, 2025 | Tokyo, Japan November 10-13, 2025 | Barcelona, Spain November 17-19, 2025 | Kochi, India About Gartner for High Tech Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at Follow news and updates from Gartner for High Tech on X and LinkedIn using #GartnerHT. About Gartner Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization's mission-critical priorities. To learn more, visit View source version on Contacts Matt Meghan Sign in to access your portfolio
