Technology companies are struggling to get enterprises to increase their IT spending and adopt generative AI on a massive scale, despite the hype behind the tool as of late. The fact of the matter is that steadily increasing inflation and interest rates are not making it easy for companies to take the plunge on generative AI.
Why it matters: New technologies can be exciting and take industries by storm, as we’ve witnessed with tools like ChatGPT. However, when the funds just aren’t there to cover said technologies, it can spell trouble for enterprises. In this case, they can get away without having AI in production for the remainder of the year, but they must have a convincing adoption strategy to keep investors at bay in the meantime.
- Many companies also need to make significant IT upgrades before they can think about generative AI, such as making fundamental data management changes.
- “It’s quite interesting at the moment because we’ve got this huge excitement around generative AI, but we also have huge global pressures around cost and around investments,” said Bethan Williams, global portfolio lead for applications and data consulting at Dell Technologies. “Everybody wants to do this, but they don’t necessarily have the time and money to do it.”
- According to Gartner, total IT spending worldwide will increase by 4.3% to $4.7 trillion this year, with IT and communication services jumping to 8.8% and 2.7%.