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Gartner, an analyst firm, released a report forecasting that global generative AI spending will reach $644 billion in 2025. This figure represents a 76.4% year-over-year increase from 2024. Despite high failure rates among early generative AI projects, organizations are still expected to invest heavily, with the lion's share of spending going towards services. GenAI services are projected to grow by 162% this year, following a 177% increase last year. According to Gartner Analyst John-David Lovelock, the shift from software to generative AI is becoming a "tidal wave of money."

The surge in spending is primarily driven by vendor investments in the technology. Hyperscalers are making massive capital expenditures on GPU infrastructure, and software vendors are rushing to deploy generative AI tools. Enterprises, however, are pulling back on in-house AI projects and increasingly opting for off-the-shelf solutions. "CIOs are no longer building generative AI tools, they’re being sold technology," Lovelock stated, emphasizing that vendors are offering solutions that meet enterprise needs.

ImgSrc: venturebeat.com

References :

• AI News | VentureBeat: Gartner forecasts gen AI spending to hit $644B in 2025: What it means for enterprise IT leaders
• www.computerworld.com: Worldwide spending on genAI to surge by hundreds of billions of dollars
• ??hub: AI can be a powerful tool for scientists. But it can also fuel research misconduct

Classification:

• HashTags: #GenAI #AISpending #GartnerReport
• Company: Gartner
• Target: Enterprises
• Feature: AI Spending Forecast
• Type: AI
• Severity: Informative