AI Business Spending Is Surging, but Can It Last?
Investors will be scrutinizing the AI spending levels of tech titans like Microsoft when they report earnings this week.
What is the increase in AI business spending from 2023 to 2024?
Business spending on generative AI surged by 500% from 2023 to 2024, reaching $13.8 billion, according to a report from Menlo Ventures.
Which areas of generative AI investment are likely to endure?
Investments that focus on improving core processes, such as supply chain optimization, predictive analytics, and customer experience applications, are more likely to endure as they address ongoing challenges that impact profitability.
What is the outlook for foundation models in AI?
While spending on foundation models saw a remarkable increase of 550% in 2024, it is unlikely to continue at that pace. Businesses may find that while these models excel at various tasks, the improvements they offer may not always justify their costs.
AI Business Spending Is Surging, but Can It Last?
published by VocalPoint Consulting
VocalPoint Consulting is a technology consulting firm with a unique commitment to client success. With 20 years of experience, we use our proprietary IT Compass™ Framework to simplify your IT decisions, negotiate contracts and manage projects. We have expertise in diverse tech sectors like AI, Cybersecurity, Cloud Computing, Telecom and Data Center solutions. Our aim is to help businesses make smarter technology decisions, thus improving returns and enhancing growth.
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