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Generative AI Is Projected To Dominate 20 Percent Of Corporate Technology Budgets By 2025

As investment in artificial intelligence (AI) continues to rise, business leaders and decision-makers in the information technology (IT) sector are increasingly confident that AI will achieve a broader level of adoption. Recent research from IDC, supported by Lenovo, indicates that organizations are now dedicating a significant portion of their IT budgets to AI implementation. 

The report titled "CIO Playbook 2025," subtitled "It's Time for AI-nomics," reveals that global spending on AI is projected to nearly triple by 2025 compared to the previous year. However, there are key challenges that must be addressed, such as uncertainties regarding return on investment (ROI) and the readiness gaps within organizations to adopt this technology. 

Demonstrating ROI: The Primary Challenge in AI Adoption 

While many AI implementations meet business expectations, the most significant challenge remains proving ROI. Financial risks and uncertainties regarding return on investment pose major obstacles to the widespread adoption of AI. 

This disparity is exacerbated by differing perceptions between the evolving investment in AI and the skepticism still held by some decision-makers. Reports indicate that 37% of management remains doubtful or skeptical about AI. In contrast, approximately 90% of IT professionals who have adopted AI believe that the technology has met their expectations. This difference highlights a gap between the immense potential of AI and the business community's confidence in the value it generates. 

Rapid Increase in Generative AI Adoption 

IT leaders anticipate that AI will account for nearly 20% of technology budgets by 2025, driven by the growing use of Generative AI. Currently, only 11% of companies have adopted GenAI-based applications. However, this figure is projected to surge nearly fourfold to 42% within the next year. 

Sectors expected to experience significant growth in the use of Generative AI include IT operations, software development, and marketing. 

"AI is a combination of a marathon and a sprint—requiring swift steps to modernize systems while ensuring technological resilience for the future," stated Ken Wong, President of the Solutions & Services Group at Lenovo, as quoted in a press release. 

He further emphasized that organizations need to simplify the design, implementation, and integration of AI to build trust and enhance future investments.

Tag: Artificial Intelligence Generative AI