Cloud inflation is contributing to an increase in IT spending trends, with Gartner forecasting a 13.8% growth rate for software spending and a 10.4% increase for IT services in 2024. This uptick is largely driven by rising cloud prices and increased utilization, which are expected to boost global spending on public cloud services.

Currently, generative AI has not had a significant impact on IT spending, with Gartner predicting that very little IT budget will be allocated to it in 2023 and 2024. However, it is expected to become part of CIOs' IT budgets starting in 2025, although it will not increase the overall technology spending.

There is a growing interest in generative AI among enterprises, with 54% of organizations expected to adopt it within the next year. In response, IT services providers like IBM are investing in training and developing solutions to support clients in deploying generative AI technologies, indicating a shift in focus towards this area.