Published on October 19, 2023, 4:14 pm

Few enterprises have reached the production stage with Generative AI, but executives are planning to increase spending on data systems that support this technology. CIOs are looking to invest more in cloud platforms, data analytics, and business intelligence tools for model training, leading to an overall growth of 8% in IT spending in 2024. Chief Data Officers are focusing on enhancing data infrastructure for analytics and AI use cases. Companies are demanding customized strategies and guardrails to effectively leverage generative AI. While it may not impact IT budgets immediately, organizations recognize the importance of investing in data systems for modernization and staying competitive.

Few enterprises have reached the production stage when it comes to Generative AI, according to a survey conducted by AWS. While it may not have a significant impact on next year’s IT budgets, executives are planning to increase spending on data systems that support this technology.

Gartner data reveals that nearly three-quarters of CIOs plan to increase spending on cloud platforms in 2024. A similar proportion is also looking to invest more in data analytics and business intelligence tools used for model training. As a result, Gartner projects an overall growth of 8% in IT spending in 2024, surpassing $5 trillion for the first time.

The focus on data management initiatives is evident among Chief Data Officers (CDOs), with almost half stating that their role involves enhancing data infrastructure for specific analytics and AI use cases. This aligns with efforts from major cloud providers like AWS, Google Cloud, and Microsoft Azure, who have been promoting products and services aiming to facilitate this transformation. So far, enterprise leaders seem inclined to leverage generative AI within the services they already use.

Companies are increasingly demanding that technology executives leverage generative AI, which requires customized strategies and necessary guardrails. To make this happen effectively, businesses must reconfigure their development processes and prioritize tackling the most significant issues first on the path towards software redemption.

While Generative AI may not have an immediate impact on IT budgets, organizations recognize the importance of investing in data systems. The growing adoption of cloud platforms and data analytics tools indicates a desire for modernization and staying ahead in an increasingly competitive landscape.

Subscribe to our free daily newsletter featuring top news, trends, and analysis read by industry experts to stay informed about the latest developments in Generative AI and other technology-related fields.

Share.

Comments are closed.