AI boom: IT spending reaches $5.43 trillion despite uncertainties!

AI boom: IT spending reaches $5.43 trillion despite uncertainties!

Global IT spending is expected to reach a record $5.43 trillion in 2023. However, this positive forecast is clouded by increasing uncertainty weighing on global investment. According to reports from Heise, many companies are currently facing a temporary break in investments, especially in new projects.

The uncertainties in the markets, some of which result from economic and geopolitical risks, have led to strategic restraint since the beginning of the second quarter of 2025. Despite these challenges, however, there is a ray of hope through ongoing digitalization initiatives, particularly in the areas of artificial intelligence and generative AI. These technologies help maintain overall IT investment and are a key driver of growth.

Forecasts and market adjustments

The Gartner analyst report highlights that IT spending is expected to increase by 7.9 percent in 2025 compared to the previous year. Nevertheless, this expectation was revised downwards by two percentage points. The submarkets for software, IT services and end devices are seeing lower growth rates than originally forecast. The boom in data center investments, supported by the demand for generative AI and by large technology providers, is counteracting this.

Spending on AI-optimized servers is predicted to reach three times the level of investment in traditional servers by 2027. In addition, the growth rate for data center investments is estimated at over 42 percent, with an expected volume of almost $475 billion. In comparison, software growth forecasts have been cut to 10.5 percent at $1.23 trillion.

Market segments and investment priorities

The service sector is also showing an adjustment, with investments falling by 4.4 percent to $1.69 trillion. The terminal equipment business now only expects growth of five percent and a volume of 760 billion US dollars. Moderate growth of two percent at just under $1.3 billion is forecast for the communications services market.

Overall, companies must assert themselves in a challenging economic environment, with advances in artificial intelligence seen as the key to future growth. The complete reports are at Heise as well as Computer Week available.