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Gartner Forecasts Generative AI Spending To Hit $644 Billion In 2025
Analyst firm Gartner released a new report today forecasting that global GenAI spending will hit $644 billion in 2025. That figure represents a 76.4% year-over-year increase over GenAI spending in 2024.
Gartner’s report joins a chorus of other industry analyses in recent months that all point to increasing adoption and spending for gen AI. Spending has been growing by 130%, according to research conducted by AI at Wharton, a research center at the Wharton School of the University of Pennsylvania. Deloitte reportedthat 74% of enterprises have already met or exceeded GenAI initiatives.
While it’s no surprise that spending on gen AI is growing, the Gartner report provides new clarity on where the money is going and where enterprises might get the most value. According to Gartner’s analysis, hardware will claim a staggering 80% of all GenAI spending in 2025. The forecast shows:
* Devices will account for $398.3 billion (99.5% growth)
* Servers will reach $180.6 billion (33.1% growth)
* Software spending follows at just $37.2 billion (93.9% growth)
* Services will total $27.8 billion (162.6% growth)
The device market was the biggest surprise, it is the market most driven by the supply side rather than the demand side, John Lovelock, distinguished VP analyst at Gartner, told VentureBeat. Consumers and enterprises are not seeking AI enabled devices, but manufacturers are producing them and selling them. By 2027, it will be almost impossible to buy a PC that is not AI enabled.
More on Gartner’s GenAI spending predictions on Venture Beat
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By Bruce BurkeAnalyst firm Gartner released a new report today forecasting that global GenAI spending will hit $644 billion in 2025. That figure represents a 76.4% year-over-year increase over GenAI spending in 2024.
Gartner’s report joins a chorus of other industry analyses in recent months that all point to increasing adoption and spending for gen AI. Spending has been growing by 130%, according to research conducted by AI at Wharton, a research center at the Wharton School of the University of Pennsylvania. Deloitte reportedthat 74% of enterprises have already met or exceeded GenAI initiatives.
While it’s no surprise that spending on gen AI is growing, the Gartner report provides new clarity on where the money is going and where enterprises might get the most value. According to Gartner’s analysis, hardware will claim a staggering 80% of all GenAI spending in 2025. The forecast shows:
* Devices will account for $398.3 billion (99.5% growth)
* Servers will reach $180.6 billion (33.1% growth)
* Software spending follows at just $37.2 billion (93.9% growth)
* Services will total $27.8 billion (162.6% growth)
The device market was the biggest surprise, it is the market most driven by the supply side rather than the demand side, John Lovelock, distinguished VP analyst at Gartner, told VentureBeat. Consumers and enterprises are not seeking AI enabled devices, but manufacturers are producing them and selling them. By 2027, it will be almost impossible to buy a PC that is not AI enabled.
More on Gartner’s GenAI spending predictions on Venture Beat
Agentic AI for the Enterprise | Inbound and Outbound AI Voice Agents
I’ve partnered with DBC Technologies and I am now consulting with companies who are interested in automating inbound and outbound messaging with AI Voice Agents.
Web AI Chatbots, Inbound / Outbound AI Voice Agents, AI Marketing & Consulting
If you are interested in AI Voice Agents for your business or organization message me.
Thats all for today, but AI is moving fast - subscribe and follow for more Neural News.
Get full access to Neural News Network at remunerationlabs.substack.com/subscribe