Worldwide IT spending is projected to total $5.1 trillion in 2024, an increase of 8% from 2023, according to the latest forecast by Gartner, Inc. While generative AI (GenAI) has not yet had a material impact on IT spending, investment in AI more broadly is supporting overall IT spending growth.
“In 2023 and 2024, very little IT spending will be tied to GenAI,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “However, organizations are continuing to invest in AI and automation to increase operational efficiency and bridge IT talent gaps. The hype around GenAI is supporting this trend, as CIOs recognize that today’s AI projects will be instrumental in developing an AI strategy and story before GenAI becomes part of their IT budgets starting in 2025.”
Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo, taking place here through Thursday.
Cloud Price Increases Bolster Software and IT Services Spending
The software and IT services segments will both see double-digit growth in 2024, largely driven by cloud spending. Global spending on public cloud services is forecast to increase 20.4% in 2024, and similarly to 2023, the source of growth will be combination of cloud vendor price increases and increased utilization.