Fortune tellers at Gartner predict that GenAI impacts will not be felt until 2025 despite a boom in IT spending next year.
Gartner said that worldwide IT spending is projected to total $5.1 trillion in 2024, an increase of eight per cent from 2023.
However, the soothsayers said that while generative AI (GenAI) has not yet had a material impact on IT spending, investment in AI more broadly supports overall IT spending growth.
Gartner analyst VP John-David Lovelock said that GenAI impacts will not be felt until 2025, even if organisations continue to invest in AI and automation to increase operational efficiency and bridge IT talent gaps.
“The hype around GenAI is supporting this trend, as CIOs recognise that today’s AI projects will be instrumental in developing an AI strategy and story before GenAI becomes part of their IT budgets starting in 2025,” he said.
Couchbase Field Engineering VP Chris Harris said many would be surprised that generative AI is not playing a more significant role in that predicted $5.1 trillion spend.
“While there have been exciting AI developments and the technology promises numerous benefits, businesses want more time to understand technologies like AI before investing and adopting them fully. This approach is understandable, given the current economic climate and the risk of failed digital investments,” he said.
Harris said that to make good on IT investments now and in the future, organisations must ensure they have the correct infrastructure to support new applications – even those powered by AI.
“Modern technology is crucial in handling the data required to drive new services, ensuring their ROI and helping developers and others use them safely and effectively. This will greatly reduce the risk that projects fail or don’t happen at all—and empower enterprises to explore new technologies like AI without fearing failure,” Harris said.
