Standard of Excellence: Anticipating Customer Needs Early and Often
The Knowledge Base: At the Forefront of Electronics Manufacturing
Global Citizenship: Training the Next Generation of Talent
Gartner Forecasts Worldwide GenAI Spending to Reach $644 Billion in 2025
March 31, 2025 | Gartner, Inc.Estimated reading time: 1 minute
Worldwide generative AI (GenAI) spending is expected to total $644 billion in 2025, an increase of 76.4% from 2024, according to a forecast by Gartner, Inc.
“Expectations for GenAI's capabilities are declining due to high failure rates in initial proof-of-concept (POC) work and dissatisfaction with current GenAI results,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Despite this, foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026.
“Ambitious internal projects from 2024 will face scrutiny in 2025, as CIOs opt for commercial off-the-shelf solutions for more predictable implementation and business value. Despite model improvements, CIOs will reduce POC and self-development efforts, focusing instead on GenAI features from existing software providers.” said Lovelock.
GenAI spending is poised for significant growth across all core markets and submarkets in 2025. GenAI will have a transformative impact across all aspects of IT spending markets, suggesting a future where AI technologies become increasingly integral to business operations and consumer products.
AI Capable Consumer Devices to Drive GenAI Spending
GenAI spending in 2025 will be driven largely by the integration of AI capabilities into hardware, such as servers, smartphones and PCs, with 80% of GenAI spending going towards hardware.
“The market’s growth trajectory is heavily influenced by the increasing prevalence of AI-enabled devices, which are expected to comprise almost the entire consumer device market by 2028,” said Lovelock. “However, consumers are not chasing these features. As the manufacturers embed AI as a standard feature in consumer devices, consumers will be forced to purchase them.”
Gartner’s GenAI spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of GenAI products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
Share on:
Suggested Items
European Chips Skills Academy Launches ECS Summer School 2025 to Inspire Future Electronics Talent
04/01/2025 | JCN NewswireThe European Chips Skills Academy (ECSA), an EU-funded project coordinated by SEMI Europe, in collaboration with industry partners AENEAS, EPoSS, and INSIDE, has announced the launch of the ECS Summer School 2025.
Real Time with... IPC APEX EXPO 2025: Highlighting Global PCB Trends and Technologies with all4-PCB
04/01/2025 | Real Time with...IPC APEX EXPOAndy Shaughnessy and all4-PCB's Ralph Jacobo discuss global distribution trends in the PCB industry, focusing on new technologies in plasma etching and final inspection. Ralph highlights the importance of IC substrate buildup technology and partnerships in the market.
Do You Have X-ray Vision? SMT007 Magazine April Issue Is No Joke
04/01/2025 | I-Connect007 Editorial TeamAs component packaging continues to evolve, the capability of inspecting through components is crucial. Has X-ray’s time finally come in electronics manufacturing? Join us in this issue of SMT007 Magazine, where we answer this question—and others—to bring more efficiency to your bottom line.
IPC APEX EXPO 2025: We’ve Got It Covered
04/01/2025 | I-Connect007 Editorial TeamIPC APEX EXPO is the largest electronics manufacturing trade show in North America, bringing together professionals from all sectors of the supply chain to educate, network, and share their products and services. We’ve put all our coverage of the show in one easy-to-find location. Just click on “Videos,” “Show Coverage” and “Photos” to find what you’re looking for. Check back regularly as more content is added. You won’t want to miss any of our unique coverage.
Real Time with... IPC APEX EXPO 2025: Akrometrix—Creative Approaches to Measuring Thermal Warpage
03/31/2025 | Real Time with...IPC APEX EXPONeil Hubble discusses his research on measuring thermal warpage which focuses on challenges in testing small, thin samples. He introduces non-destructive testing methods that effectively measure without damaging components. Neil highlights the industry's growing interest in AI and outlines future technology goals, including improved resolution and automation to enhance production efficiency.