back to article Business value from GenAI remains elusive despite IT spending boom

Tech analysts have forecast 9.8 percent year-over-year growth in worldwide IT spending in 2025, reaching $5.61 trillion and driven by continuing AI investments, despite “moonshot” projects seeing a high failure rate. Our expectations for what generative AI can and will do are starting to come down... Global research firm …

  1. Guy de Loimbard Silver badge
    Meh

    Where do they get this info?

    "Spending on AI-optimized servers in 2025 is projected to be twice that of traditional servers, reaching $202 billion."

    I'm not even sure what that means. What is an AI-Optimized Server when it's at home.

    Notwithstanding the above, it's very much onpoint about a lack of defined or clear benefit to the AI-Hype at the real world end.

    Sure AI slingers and Data Centers and Hardware and Power are all doing okay out of it, but what about Joe Public?

    Seems there's a long road to ROI for AI.

    1. Nick Porter

      Re: Where do they get this info?

      An "AI-optimised server" is one with a GPU.

      1. Howard Sway Silver badge

        Re: Where do they get this info?

        I expect at least half of them don't even have that - just slap an "optimised for AI" sticker on them and you can charge an extra grand.

  2. Flak
    Go

    Try, baby, try!

    Gen AI is going to be a bit like post-it notes, which people didn't know what to do with at first, but no home and office can live without today.

    Through experimentation (both ad hoc and planned larger projects) winners will emerge - in terms of use cases, adoption best practice, applications, etc.

    Hang on in there and, to paraphrase the Orange one's inaugural one liner: try, baby try!

    1. Anonymous Coward
      Anonymous Coward

      Re: Try, baby, try!

      There are no post-it notes in my home or my office. Gen AI will eventually settle into some edge-case uses but not impact the majority of people and roles or ever pay for the initial investment. Hollywood special effects, drug and material design, marketing materials (written and graphical for companies that can't afford better), etc. Not to mention students who don't want to learn the subject but still want a passing grade. We'll have to go through a few years of failures before people give up on it as unreliable and even when reliable just regurgitating, not innovating. There will be a few anti-people uses as well if they are not prevented, such as is happening in recruitment.

    2. Wang Cores

      Re: Try, baby, try!

      Yes. Keep throwing compute at super important questions like "recommend me an outfit for the day".

    3. find users who cut cat tail

      Re: Try, baby, try!

      A good analogy, actually. There are no post-it notes in our office (and definitely none at home). They are messy and impractical in all sorts of ways, but could sometimes work as a kluge, I guess.

      1. Anonymous Coward
        Anonymous Coward

        Re: Try, baby, try!

        Just think of all those "lost" passwords

  3. MOH

    This is the same "distinguished analyst" who told us 7 years ago that millions of jobs would be replaced by AI by 2020.

    And 8 years ago that the business value-add of Blockchain would be 176 billion by 2025.

    https://venturebeat.com/ai/how-ai-augmentation-will-fuel-net-job-growth-by-2020/

    Why do reputable publications keep regurgitating his nonsense?

    1. Guy de Loimbard Silver badge

      The very first few lines of that article are absolutely amazing.

      I know hindsight is a great tool, but predictions like this are not standing the test of very short time.

      I do wonder why Gartner think they are Nostradamus.

      I had a boss who once only gave a shit about being in a magic quadrant according to Gartner.....

      I wonder if he feels the same to this day?

      1. ecarlseen

        Gartner is a marketing company, very thinly disguised as a research company, and always has been.

  4. amanfromMars 1 Silver badge

    Just more crystal ball gazing a la languishing VP analyst at Gartner ‽ ...or maybe not

    Lindsay, Hi,

    Whereas it may or may not be the case that business value from GenAI remains elusive despite IT spending boom, the same cannot be said of the value of businesses subject to the interference and future reliance on GenAI, which slowly and surely continues to grow in number, in order that established legacy positions try to maintain the lead of, and retain command and control of, hostile opposition and peer competition alike.

    And the element of stealthy self-harming collateral risk in novel and sensitive entrepreneurial fields of AIDevelopment is a constantly clear and present danger to be prepared for, or ideally, never entertain, with some business operations more susceptible to self-harm than others. Great care is best taken with this prime candidate for GenAI shenanigans .......

    amfM [2501220834] ..... points out an alarming development on https://www.nationaldefensemagazine.org/articles/2025/1/22/algorithmic-warfare-key-quantum-provision-dropped-from-2025-ndaa

    [Thank you. Your comment willmay not be displayed soon after reviewing.]

    Josh, Hi,

    You may like to consider and realise that quantum technology and its communicable applications are neither compatible nor appropriate for bellicose military operations, revealing as they are able to do, exploitable systemic vulnerabilities against which there is no available defence against a vast novel range of likely never before even imagined possible, successful attack vectors.

    Things have changed, it is a new era ... and nothing is just as simple as it was before for there are new practical, virtually remote command and control levers to master for the benefits which flow associated with the exercise of an AI Advantage [a Derivative Dividend for Almighty IntelAIgents?]

  5. PeterM42
    Facepalm

    What a lot of people don't realise is that.....

    AI can also mean Asinine Ignorance as recently demonstrated by UK's very own Keir Starmer.

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