CIOs Drive IT Spending With AI Infrastructure Investment
Techstrong ITSM, Thursday, October 31st, 2024
Global IT spending will grow 9.3% year over year in 2025 to $5.74 trillion, according to a Gartner report. The market will achieve a 7.2% increase this year, topping $5.3 trillion, the analyst firm said.
John-David Lovelock, distinguished VP analyst at Gartner, explained CIOs are coming out of 2024 with many proof-of-concept projects having been completed, and many of the projects being a failure.
'GenAI PoCs failed most often due to corporate data inadequacies, inability of the organization to change and lack of ROI,' he said.
In 2025 and 2026, CIOs will be reducing their expectations for what GenAI can accomplish while simultaneously increasing the spending.
Lovelock predicted there would be a transition away from self-development of GenAI projects toward a reliance on GenAI enabled features delivered by incumbent software vendors.