Global spending for information technology is projected to hit about $5.1 trillion in 2024, but the impact of generative artificial intelligence will not be felt until 2025, a new report has found.
The total would be an 8 per cent increase from 2023, with generative AI to account for “very little IT spending” this year and next, only becoming a considerable factor in company budgets by 2025, US research firm Gartner said.
“However, organisations are continuing to invest in AI and automation to increase operational efficiency and bridge IT talent gaps,” John-David Lovelock, a distinguished vice president analyst at Gartner, wrote in the report.
“The hype around generative AI is supporting this trend, as chief information officers recognise that today’s AI projects will be instrumental in developing an AI strategy and story before generative AI becomes part of their IT budgets starting in 2025.”
Gartner's latest report ties in with its recent study that generative AI is overhyped, positioning it at the peak of “inflated expectations” for emerging technology in 2023, close behind AI-augmented software engineering and cloud technology.
Generative AI was brought into the limelight with the emergence of ChatGPT, the conversational platform from Microsoft-backed Open AI that triggered a race between technology companies and personalities.
The technology is expected to deliver “transformational benefits” within two to five years before plateauing, a state in which little or no progress is being made after a period of development, it had said.
Gartner defines “transformational benefits” as something that “enables new ways of doing business across industries that will result in major shifts in industry dynamics”.
“While generative AI has not yet had a material impact on IT spending, investment in AI more broadly is supporting overall IT spending growth,” Gartner said in the new report.
IT spending growth in 2024 will be led by software, which is projected to rise nearly 14 per cent to more than $1 trillion, it said.
The IT services category is also expected to post double-digit growth of 10.4 per cent, and would lead in terms of value with nearly $1.55 trillion.
These two segments will be largely driven by the cloud, as global spending on public cloud services is projected to surge 20.4 per cent in 2024 on the back of a combination of cloud seller price increases and increased use, the study showed.
Data centre systems, devices and communications services are to post growth of 9.5 per cent, 4.8 per cent and 3.3 per cent, respectively, with the value of the last category seen close to $1.5 trillion, Gartner said.
Software is also being boosted by cybersecurity spending, as AI has “created a new security scare for organisations”, Mr Lovelock said.
In a separate study, Gartner said that about 80 per cent of chief information officers plan to increase spending on cyber and information security in 2024, the top technology category for increased investment.
“Gartner is projecting double-digit growth across all segments of enterprise security spending for 2024,” he said.
A portion of IT spending this year is also being delayed to 2024 as chief information officers are experiencing “change fatigue”, which Gartner defines as a “hesitation to invest in new projects and initiatives”. This trend is expected to continue into 2025, it said.
The delay is being caused by “a new wave of pragmatism, capital restrictions or margin concerns”, Mr Lovelock said.
“Organisations are shifting the emphasis of IT projects towards cost control, efficiencies and automation, while curtailing IT initiatives that will take longer to deliver returns.”
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
The years Ramadan fell in May
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UAE v Ireland
1st ODI, UAE win by 6 wickets
2nd ODI, January 12
3rd ODI, January 14
4th ODI, January 16
UAE currency: the story behind the money in your pockets
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
KILLING OF QASSEM SULEIMANI
Babumoshai Bandookbaaz
Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
Challenge Cup result:
1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults
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INFO
Result
Qualifier: Islamabad United beat Karachi Kings by eight wickets
Fixtures
Tuesday, Lahore: Eliminator 1 - Peshawar Zalmi v Quetta Gladiators
Wednesday, Lahore: Eliminator 2 – Karachi Kings v Winner of Eliminator 1
Sunday, Karachi: Final – Islamabad United v Winner of Eliminator 2
Listen to Extra Time
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UAE currency: the story behind the money in your pockets
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Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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Hidden killer
Sepsis arises when the body tries to fight an infection but damages its own tissue and organs in the process.
The World Health Organisation estimates it affects about 30 million people each year and that about six million die.
Of those about three million are newborns and 1.2 are young children.
Patients with septic shock must often have limbs amputated if clots in their limbs prevent blood flow, causing the limbs to die.
Campaigners say the condition is often diagnosed far too late by medical professionals and that many patients wait too long to seek treatment, confusing the symptoms with flu.
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The stats: 2017 Jaguar XJ
Price, base / as tested Dh326,700 / Dh342,700
Engine 3.0L V6
Transmission Eight-speed automatic
Power 340hp @ 6,000pm
Torque 450Nm @ 3,500rpm
Fuel economy, combined 9.1L / 100km
Remaining fixtures
- August 29 – UAE v Saudi Arabia, Hazza bin Zayed Stadium, Al Ain
- September 5 – Iraq v UAE, Amman, Jordan (venue TBC)
UAE currency: the story behind the money in your pockets