Published on April 19, 2024, 6:13 am

A surge in investments in artificial intelligence (AI) and a natural replacement cycle for computing devices bought during the COVID-19 pandemic are anticipated to propel an 8% increase in global IT spending this year, as per Gartner’s forecast.

The growing interest in AI, which has been on the rise since last year, is expected to drive a 10% surge in data center system spending in 2024. This inclination towards AI is projected to boost worldwide IT spending to $5.06 trillion this year. John-David Lovelock, distinguished vice president analyst at Gartner, emphasized the significant narratives surrounding the potential of generative AI across companies.

However, caution was advised by Lovelock for Chief Information Officers (CIOs) delving into the AI trend as their aspirations might outpace execution capabilities. An evaluation discovered that while many CIOs planned to implement generative AI tools promptly, these plans were deemed overly ambitious and less likely to materialize within the specified timeframe.

Companies enamored by the marketing pitch of AI benefits were encouraged by Mark McDonald, a distinguished vice president analyst at Gartner, to seek proofs of concept before full implementation. The initial applications of generative AI are anticipated to focus on fundamental tasks like drafting email replies and contract analysis.

One prevalent challenge hindering AI adoption is the absence of a clear investment strategy. Many organizations are swayed by executive pressures and competitive fears rather than by strategic calculations regarding ROI and value additions from incorporating AI technologies.

As enterprises gear up for adopting AI solutions, an influx of AI-based products from software vendors is foreseen over the next couple of years. Consequently, numerous applications powered by AI are poised to become commonplace shortly across various industries and services.

Despite the potential advantages that AI offers such as cost savings and heightened efficiencies, some CIOs remain skeptical about its tangible benefits due to associated price increases and perceived value propositions.

In alignment with escalating demand for supporting AI workloads, Gartner anticipates a 10% increase in spending on data center systems in 2024 compared to previous years. Despite earlier predictions showing conservative growth estimates for IT spending compared to current anticipations showcasing robust expansion across all key categories including software and IT services.

Furthermore, following a brief downturn during 2023, expenditure on smartphones PCs and tablets is expected to rebound with a 3.6% increase this year as organizations commence replacing devices procured during the peak pandemic period when remote work was prevalent.

The imminent changes indicate a return to regular device refresh cycles as entities reassess their technology needs post-pandemic-induced transitions.


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