AI boosts world IT spending as Gartner predicts 8% growth

Worldwide IT spending is set to grow to $5 trillion in 2024, an increase of 8% from 2023, tech consulting firm Gartner says.

This is an increase from 6.8% in the previous quarter, and Gartner forecasts that IT spending will surpass $8 trillion “well before the end of the decade.”

Generative AI is one of the main players responsible for the uptick in spending, with the research and consulting service anticipating that outlays on data center systems will grow from 4% to 10%.

“We are seeing a cycle of story, plan, and execution when it comes to GenAI. In 2023, enterprises were telling the story of GenAI, and in 2024, we are seeing most of them planning for eventual execution in 2025,” John-David Lovelock, Distinguished VP Analyst at Gartner, said.

According to Lovelock, there’s “gold rush level spending” by service providers in the market that are supporting large-scale Generative AI projects like servers and semiconductors.

Furthermore, Lovelock claims that in 2024, “AI servers will account for close to 60% of hyper scalers total server spending.”

Where there are successes, there are als challenges, such as retaining IT talent, as enterprises are failing to attract talent with integral IT skill sets.

“This creates a greater need for investment in consulting spend compared to internal staff. We are at an inflection year for this trend, with more money being spent on consulting than internal staff for the first time,” Lovelock said.

Devices are also expected to “bounce back” this year, as the average lifespan for mobile phones is decreasing as consumers and corporations replace their mobile devices earlier.

Device spending is expected to achieve almost $700 billion, an increase from $664 in the previous year. Yet this facet of IT spending will only represent a 3.6% growth rate.

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