Gartner: Worldwide IT spending to grow, unaffected by AI

Generative AI is not yet significantly impacting global IT spending levels, with it to be worth US$.4.7tn, according to the latest research by Gartner, Inc

Worldwide IT spending is projected to total US$4.7tn in 2023, an increase of 4.3% from 2022, according to the latest forecast by Gartner. As CIOs continue to lose the competition for IT talent, the report finds they are shifting spending to technologies that enable automation and efficiency to drive growth at scale with fewer employees. 

“Digital business transformations are beginning to morph,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “IT projects are shifting from a focus on external facing deliverables such as revenue and customer experience, to more inward facing efforts focused on optimisation.”

The latest report by Gartner follows earlier research which suggested global IT spending would grow despite challenging economic conditions

And even as layoffs continue to impact the tech industry at large, there is still a critical shortage of skilled IT labour, Gartner’s report found. The demand for tech talent greatly outstrips the supply, which will continue until at least 2026 based on forecast IT spend.

Enterprises will incorporate generative AI through existing tools

While generative artificial intelligence (AI) is top of mind for many business and IT leaders, it is not yet significantly impacting IT spending levels. In the longer-term, generative AI will primarily be incorporated into enterprises through existing spending. 

“Generative AI’s best channel to market is through the software, hardware and services that organisations are already using,” said Lovelock. “Every year, new features are added to tech products and services as add-ons or upgrades. Most businesses will incorporate generative AI in a slow and controlled manner through upgrades to tools that are already built into IT budgets. 

“When it comes to AI this year, organisations can thrive without having AI in production but they cannot be without a story and a strategy.”

“When it comes to AI this year, organisations can thrive without having AI in production but they cannot be without a story and a strategy.”

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 2Q23 Update.”

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