Worldwide information technology spending is projected to rise to five point six one trillion dollars in 2025, reflecting a growth rate of nine point eight percent from five point eleven trillion dollars in 2024, according to research by Gartner. However, much of this increase is expected to be offset by price hikes, meaning that actual growth in IT spending may be skewed. Key areas for increased investment include data center systems, which will see a growth rate of twenty-three point two percent, and spending on devices, which is expected to increase by ten point four percent. Software spending is anticipated to rise from one point zero nine trillion dollars to one point two four trillion dollars, while IT services will grow from one point five eight trillion dollars to one point seven three trillion dollars. Despite the challenges posed by rising prices, Gartner analyst John-David Lovelock noted that organizations are still investing in generative artificial intelligence technologies, although expectations for these technologies are declining. Spending on AI-optimized servers is expected to reach two hundred two billion dollars.
A recent survey by Verizon Business reveals a significant increase in artificial intelligence usage among small and midsize businesses, with 39 percent of respondents actively using AI in 2024, up from just 14 percent the previous year. As businesses face economic challenges, many are turning to technology to enhance efficiency. The survey, conducted by Morning Consult with insights from 621 small and midsize businesses across the United States, also found that 38 percent have added digital components to their operations over the past year, and 66 percent upgraded their internet bandwidth to meet growing demands. Despite concerns about inflation and financial stability, over half of the surveyed businesses believe their financial situation will improve soon.
A new survey by Techaisle reveals that the adoption of artificial intelligence personal computers, or AI PCs, is significantly growing among small and medium-sized businesses and midmarket firms. The survey highlights that seventy-seven percent of IT decision-makers are embracing this technology, followed by forty-six percent of C-suite executives. Engineers and developers are also making strides, with thirty-eight percent planning to use AI PCs, while data scientists mirror that interest. Business analysts and executives are not far behind, with thirty-six and twenty-four percent respectively. maximize the benefits of AI PCs while addressing ethical and security implications.
Why do we care?
There’s a key detail in there – “much of this increase is expected to be offset by price hikes.” There is a theme of do more with less that is embedded in this data. Sure, IT spending may go up, but if it’s all consumed by price hikes, the end customer is not getting more. Be aware of this dynamic when working with your customers. Your IT business may be seeing some of those gains (and perhaps much being passed on to your vendors). Your customers will be looking for more outcomes related to their business, and that should be your key insight.