Lovelock advises CIOs to pace themselves as almost every software provider they deal with is likely to introduce a generative AI product in the next year or so. He also highlights that the expectations of what generative AI could do for a company will likely decrease as it becomes clear that the return-on-investment equation cannot balance the costs. Despite this, Gartner predicts significant growth in spending on devices, software, IT services, and communication services in Europe over the next few years.
Key takeaways:
- John-David Lovelock, a Distinguished VP Analyst at Gartner, predicts that it will take three years for a killer app to emerge that helps businesses use generative AI to drive meaningful productivity gains.
- Gartner anticipates that $50 billion will be spent on datacenter systems in Europe in 2024, with growth slowing to 8.7 percent in 2025 to $54.4 billion.
- Despite the hype surrounding generative AI, there are few essential applications that need AI, and the must-have app is not expected to emerge in the next three years.
- Spending on Devices in Europe is forecast to grow 6.4 percent year-on-year in 2024 to $134.2 billion, and jump 9.3 percent in 2025 to $146.7 billion, according to Gartner.