AI investments drive IT spending in 2025 despite uncertainties!

AI investments drive IT spending in 2025 despite uncertainties!

Global IT spending is expected to increase by around 8 percent in 2025, driven by massive investments in artificial intelligence (AI). According to a recent analysis by Gartner, 62 percent of CEOs and top managers see AI as a crucial competitive factor for the next ten years. However, while there is a temporary pause in investment in new projects due to global uncertainties, these concerns are fading into the background as ongoing digitalization initiatives, particularly in the AI ​​space, continue to provide strong impetus. Computer Week reports that this dynamic is also influencing the growth of the software and services market, although it may slow slightly due to the pause in uncertainty.

John-David Lovelock, VP Analyst at Gartner, explains that companies are now increasingly investing in AI-related infrastructure such as data centers. Spending on AI-optimized servers is expected to reach three times the investment in traditional servers by 2027, marking a remarkable shift in the IT landscape. These changes are also reflected in the strategies of leading companies: 64 percent of managers surveyed say that the main reason for technology investments is competitiveness. According to a survey conducted between March and May 2025 among 252 executives from North America and Western Europe, these companies generate at least $500 million in annual revenue.

Influence of global uncertainties

The “uncertainty pause” identified in the survey shows that many companies, especially in the IT sector, have tended to exercise strategic restraint since the beginning of the second quarter of 2025. This reluctance is a response to economic uncertainties and geopolitical risks that many executives perceive as major threats. 41 percent of respondents cited economic shocks and 32 percent cited geopolitical risks as their companies' biggest concerns. Despite these concerns, 61 percent of companies stated that they started 2025 with better conditions than in the previous year.

However, the pause in uncertainty is not due to budget cuts, but rather reflects strategic decisions to postpone new spending for the time being. Particularly affected are the areas of IT hardware and infrastructure, which are under pressure due to price increases and disruptions in supply chains. However, ongoing or recurring expenses, such as for cloud and managed services, remain stable. Only 24 percent of companies expect to exceed their annual targets for 2025, underscoring the challenges companies face.

Technological trends and development

An interesting example of technological progress can also be seen in the way companies deal with the functionality of established software providers. Expectations are high that the increase in GenAI functions will convince many, but will not necessarily lead to a purchase decision. Given these trends, pressures from customers, competition and regulation remain manageable for the majority of executives, somewhat alleviating the uncertainties.

Overall, investments in AI and related technologies will have a significant impact on IT spending in 2025, while at the same time the dynamics of the global markets and geopolitical landscape pose serious challenges. According to the analysis by Silicon.de Companies must find a balance between the opportunities that technology offers and the risks associated with an uncertain market situation.