Gartner Forecasts Worldwide GenAI Spending to Reach $644 Billion in 2025
Gartner forecasts worldwide generative AI (GenAI) spending to reach $644 billion in 2025, marking a 76.4% increase from 2024. Despite current high failure rates in proof-of-concept work and dissatisfaction with GenAI results, foundational model providers continue substantial investments to enhance AI capabilities.
The forecast highlights that 80% of GenAI spending will be directed towards hardware, including servers, smartphones, and PCs. CIOs are expected to shift from ambitious internal projects to commercial off-the-shelf solutions for more predictable implementation. By 2028, AI capabilities are projected to become standard features across almost the entire consumer device market.
Gartner prevede che la spesa mondiale per l'AI generativa (GenAI) raggiungerà 644 miliardi di dollari nel 2025, segnando un aumento del 76,4% rispetto al 2024. Nonostante i tassi di fallimento attuali nei lavori di prova di concetto e la insoddisfazione per i risultati di GenAI, i fornitori di modelli fondamentali continuano a investire sostanzialmente per migliorare le capacità dell'AI.
La previsione evidenzia che l'80% della spesa per GenAI sarà destinato all'hardware, inclusi server, smartphone e PC. Si prevede che i CIO passeranno da progetti interni ambiziosi a soluzioni commerciali pronte all'uso per un'implementazione più prevedibile. Entro il 2028, si prevede che le capacità dell'AI diventino caratteristiche standard in quasi tutto il mercato dei dispositivi consumer.
Gartner pronostica que el gasto mundial en IA generativa (GenAI) alcanzará 644 mil millones de dólares en 2025, marcando un aumento del 76,4% con respecto a 2024. A pesar de las altas tasas de fracaso actuales en trabajos de prueba de concepto y la insatisfacción con los resultados de GenAI, los proveedores de modelos fundamentales continúan realizando inversiones sustanciales para mejorar las capacidades de la IA.
La previsión destaca que el 80% del gasto en GenAI se dirigirá hacia hardware, incluidos servidores, smartphones y PCs. Se espera que los CIO cambien de proyectos internos ambiciosos a soluciones comerciales listas para usar para una implementación más predecible. Para 2028, se proyecta que las capacidades de IA se conviertan en características estándar en casi todo el mercado de dispositivos de consumo.
가트너는 전 세계 생성 AI(GenAI) 지출이 2025년까지 6440억 달러에 이를 것으로 예상하며, 이는 2024년 대비 76.4% 증가를 의미합니다. 현재 개념 증명 작업에서 높은 실패율과 GenAI 결과에 대한 불만이 있음에도 불구하고, 기본 모델 제공업체들은 AI 기능을 향상시키기 위해 상당한 투자를 계속하고 있습니다.
예측에 따르면 GenAI 지출의 80%가 서버, 스마트폰 및 PC를 포함한 하드웨어에 할당될 것입니다. CIO들은 보다 예측 가능한 구현을 위해 야심찬 내부 프로젝트에서 상용 솔루션으로 전환할 것으로 예상됩니다. 2028년까지 AI 기능이 거의 모든 소비자 기기 시장에서 표준 기능이 될 것으로 예상됩니다.
Gartner prévoit que les dépenses mondiales en IA générative (GenAI) atteindront 644 milliards de dollars d'ici 2025, marquant une augmentation de 76,4% par rapport à 2024. Malgré les taux d'échec élevés actuels dans les travaux de preuve de concept et l'insatisfaction vis-à-vis des résultats de GenAI, les fournisseurs de modèles fondamentaux continuent d'investir de manière significative pour améliorer les capacités de l'IA.
Les prévisions soulignent que 80% des dépenses en GenAI seront consacrées au matériel, y compris les serveurs, les smartphones et les PC. On s'attend à ce que les DSI passent de projets internes ambitieux à des solutions commerciales prêtes à l'emploi pour une mise en œuvre plus prévisible. D'ici 2028, les capacités de l'IA devraient devenir des caractéristiques standard dans presque tout le marché des appareils grand public.
Gartner prognostiziert, dass die weltweiten Ausgaben für generative KI (GenAI) bis 2025 auf 644 Milliarden Dollar ansteigen werden, was einen 76,4% Anstieg im Vergleich zu 2024 darstellt. Trotz der derzeit hohen Fehlerraten bei Machbarkeitsstudien und der Unzufriedenheit mit den Ergebnissen von GenAI setzen die Anbieter von Basis-Modellen weiterhin erhebliche Investitionen ein, um die KI-Fähigkeiten zu verbessern.
Die Prognose hebt hervor, dass 80% der GenAI-Ausgaben in Hardware fließen werden, einschließlich Server, Smartphones und PCs. CIOs wird ein Wechsel von ehrgeizigen internen Projekten zu handelsüblichen Lösungen für eine vorhersehbarere Implementierung erwartet. Bis 2028 wird prognostiziert, dass KI-Fähigkeiten zu Standardmerkmalen auf fast dem gesamten Markt für Endverbrauchergeräte werden.
- Substantial market growth projection of 76.4% in GenAI spending for 2025
- Strong hardware segment growth with 80% of total GenAI spending
- Continued billion-dollar investments from foundational model providers
- High failure rates in current GenAI proof-of-concept implementations
- Customer dissatisfaction with current GenAI results
- Forced consumer adoption of AI features in devices rather than market demand
Insights
Gartner's forecast of
The report highlights a significant strategic shift in enterprise AI adoption. CIOs are moving away from internal proof-of-concept projects toward commercial off-the-shelf solutions, which will reshape vendor competition in the enterprise software market. This trend benefits established software providers with integrated GenAI features while potentially challenging pure-play AI startups.
Most notably, hardware will capture approximately
For Gartner itself, the publication of such influential forecasts reinforces its core value proposition. By providing detailed insights into emerging technology markets, Gartner maintains its essential position for technology decision-makers navigating complex purchase decisions. The company's methodology - analyzing sales from thousands of vendors across the full spectrum of GenAI products and services - demonstrates the comprehensive nature of their research capabilities.
The upcoming Gartner IT Symposium/Xpo events further capitalize on enterprise interest in AI implementation strategies, creating additional touchpoints with their client base beyond research subscriptions.
This forecast reveals a fascinating paradox in the GenAI market. Despite disappointment with current implementations and high proof-of-concept failure rates, the market is projected to surge
The hardware dominance (
CIOs' pivot from ambitious internal projects to commercial solutions indicates the market is entering a pragmatic phase following initial experimentation. This favors established software vendors who can embed GenAI features within existing products, offering more predictable implementation pathways and clearer ROI calculations.
Behind these trends lies massive investment from foundation model providers to enhance model capabilities despite current limitations. This suggests the technical foundation will continue improving even as the market focuses on practical applications and use cases with clearer business value.
The forecast that AI-enabled devices will comprise almost the entire consumer device market by 2028 represents a profound market transformation. This standardization will create a ubiquitous AI hardware layer upon which new software experiences will be built, potentially accelerating adoption cycles for emerging AI applications.
CIOs Must Prepare for Rising GenAI Spending in 2025, Fueled by Better Foundational Models and Growing Demand for AI Products
“Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026.
“Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value. Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers,” said Lovelock.
GenAI spending is poised for significant growth across all core markets and submarkets in 2025 (see Table 1). GenAI will have a transformative impact across all aspects of IT spending markets, suggesting a future where AI technologies become increasingly integral to business operations and consumer products.
Table 1. Worldwide GenAI Spending Forecast (Millions of |
||||||||
|
2024 Spending |
2024 Growth (%) |
2025 Spending |
2025 Growth (%) |
||||
Services |
10,569 |
177.0 |
27,760 |
162.6 |
||||
Software |
19,164 |
255.1 |
37,157 |
93.9 |
||||
Devices |
199,595 |
845.5 |
398,323 |
99.5 |
||||
Servers |
135,636 |
154.7 |
180,620 |
33.1 |
||||
Overall GenAI |
364,964 |
336.7 |
643,860 |
76.4 |
||||
Source: Gartner (March 2025) |
||||||||
AI Capable Consumer Devices to Drive GenAI Spending
GenAI spending in 2025 will be driven largely by the integration of AI capabilities into hardware, such as servers, smartphones and PCs, with
“The market’s growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028,” said Lovelock. “However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them.”
Gartner’s GenAI spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of GenAI products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
The Gartner GenAI spending forecast delivers a unique perspective on GenAI spending across the hardware, software and IT services segments. These reports help Gartner clients understand market opportunities and challenges. The most recent GenAI spending forecast research is available to Gartner clients in “Forecast Alert: GenAI IT Spending, 2023-2028, Worldwide.”
Additional leadership trends will be presented during Gartner IT Symposium/Xpo, the world's most important conference for CIOs and other IT executives. Gartner analysts and attendees will explore the technology, insights and trends shaping the future of IT and business, including AI, business transformation, cybersecurity, customer experience, data analytics, executive leadership and more. Follow news and updates from the conferences on X using #GartnerSYM, and on the Gartner Newsroom.
Upcoming dates and locations for Gartner IT Symposium/Xpo include:
September 8-10, 2025 |
October 20-23, 2025 |
October 28-30, 2025 |
November 10-13, 2025 |
November 17-19, 2025 | Kochi,
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250331176525/en/
Matt LoDolce
Gartner
matt.lodolce@gartner.com
Meghan Moran
Gartner
meghan.moran@gartner.com
Source: Gartner, Inc.
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