AI driving IT spending despite global uncertainty
Worldwide IT spending 2025 will total $5.43 trillion in 2025, an increase of 7.9% from 2024. AI-related infrastructure, such as data centre systems, will surge while both software and services growth will slow down because of global uncertainty, a forecast from market research firm Gartner shows. “Economic (41%) and geopolitical (32%) shocks present the greatest risk according to business leaders.”
“While there is a business pause on net-new spending due to a spike in global uncertainty, the effect is subsumed by ongoing AI and generative AI digitisation initiatives,” says the firm’s VP John-David Lovelock.
“Data centers are experiencing a surge driven by GenAI, with spending on AI optimised servers, which was virtually nonexistent in 2021, expected to triple that of traditional servers by 2027”.
A Gartner survey of 252 senior leaders across various industries in North America and Western Europe shows that 62% identify AI as defining the future of competition for the next ten years.
Competitiveness is a primary reason why enterprises will invest in technology and business change (64%) in an eroding environment.
According to Lovelace, more time and spending is being focused on delivered functionality from incumbent software providers.
“CIOs are looking towards more ‘plug and play’ simple use cases as they are being sold GenAI functionality, but not necessarily buying the functionality.”
The forecast says that heightened economic uncertainty and geopolitical risks have led to an “uncertainty pause,” encompassing a strategic suspension of net-new spending across various sectors, including IT.
The survey found that 61% of enterprises started 2025 in a better position than at the same time last year, but only 24% expect to end the year ahead of their 2025 plans.
“This pause does not stem from budget cuts, as budgets remain fully allocated,” says Lovelock. “Rather, it is a strategic decision to delay new expenditures.
“The IT hardware and infrastructure sectors are particularly affected due to price increases and supply chain disruptions. In contrast, ongoing or recurring spending, such as cloud and managed services, is maintaining greater stability.”
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