Global IT spending is projected to grow by 9.3% year-over-year in 2025, reaching $5.74 trillion, according to a recent Gartner report. This year alone, spending is expected to exceed $5.3 trillion, with IT services remaining the largest category, accounting for about 30% of the market. The report highlights a significant 35% year-over-year increase in infrastructure spending due to AI-directed investments, with server sales anticipated to surge as CIOs transition from pilot programs to full-scale generative AI implementation. Gartner analyst John-David Lovelock notes that the demand for generative AI will nearly triple server sales from 2023 to 2028. Lovelock warns that organizations must navigate vendor offerings carefully to secure the best return on investment as they integrate generative AI into their operations.
Gartner has unveiled its top strategic predictions for IT organizations and users through 2025 and beyond, highlighting the significant impact of artificial intelligence. By 2026, 20% of organizations are expected to use AI to flatten their structures, potentially eliminating over half of middle management positions. Moreover, by 2028, around 70% of companies will implement anti-digital policies in response to digital addiction affecting one billion people globally. Gartner predicts that by 2029, 10% of global boards will rely on AI insights to challenge executive decisions. Additionally, 70% of new employee contracts by 2027 will likely include clauses related to AI representations of their personas. By 2028, 15% of daily work decisions will be made by AI systems, and organizations using AI governance platforms are expected to see a 40% reduction in ethical incidents. Additionally, Gartner forecasts that 50% of enterprises will adopt disinformation security solutions by 2028 and that spatial computing will grow from $110 billion in 2023 to $1.7 trillion by 2033, while hybrid computing is set to emerge next year.
A new study by the IEEE, the world’s largest technical professional organization, reveals that 58 percent of technology leaders believe artificial intelligence will be the most important technology in 2025. The survey also highlighted that 26 percent see cloud computing and 24 percent see robotics as significant contenders. Furthermore, there is a consensus among 91 percent of respondents that 2025 will bring a ‘reckoning’ for generative AI as public understanding and expectations evolve regarding its capabilities. Additionally, 35 percent of surveyed technologists expect quantum computing to be integrated into their operations by 2025.
Why do we care?
I included that last one to remind us that some predictions are just … wrong. 35% think they get quantum? What does that even mean? Instead, let’s focus on the sentiment.
IT spending is growing, and investment in generative AI is significant, driving how companies will spend their budgets. The goal, drive down costs through less people, and AI governance is a key component of that. And organizations should expect the AI reckoning next year. Rushing to deploy AI without the proper governance is a liability, as companies could face increased scrutiny from regulatory bodies and customers alike, especially around privacy, bias, and transparency.
Don’t get sidetracked by lofty predictions. Instead, concentrate on scalable, practical technology investments that bolster efficiency, improve governance, and retain stakeholder trust.