<ul><li>Worldwide spending on GenAI is projected to reach US$644 billion in 2025, a 76.4% increase from 2024.</li><li>High failure rates in initial proof-of-concept work and growing dissatisfaction with current GenAI outcomes are diminishing expectations for GenAI capabilities.</li><li>Despite improvements in models, CIOs are likely to scale back POC and self-development efforts, focusing on GenAI features offered by established software providers.</li><li>GenAI spending in 2025 will be primarily driven by the integration of AI capabilities into hardware, such as servers, smartphones, and PCs, with 80% of GenAI spending allocated to hardware.</li></ul>

Gartner Forecasts AI-Driven Hardware to Propel GenAI Spending in 2025

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