Gartner Forecast: High Growth Rate in Global Generative AI Spending

Gartner has published a report forecasting that the global spending on generative AI will surge by more than 75% in 2025, to a total of $644B, compared to 2024.

• Hardware: 80% of the increase will be for AI capable hardware, driven largely by the integration of AI capabilities into servers, smartphones, and PCs.

• Software: Gen AI software expenditures will almost double in 2025, however, due to the existing limitations of gen AI tools, internal projects will face greater scrutiny this year.

• Services: Although gen AI services expenses will be the smallest piece of the total pie, the growth rate is exponentially higher at 162%.

Gartner expects CIOs to opt for commercial off-the-shelf solutions for more predictable implementation and business value, and to reduce POC [proof of concept] and self-development efforts, focusing instead on gen AI features from existing software providers.

The growth rate in services makes perfect sense. Companies typically invest in technologies first (hardware and software), only to realize later that they need professional services (like the AI adoption and change services Caspius provides) to fully capitalize on their investments. We expect the services segment to continue to experience strong growth moving forward.