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 Reliance Infosystems
Reliance Infosystems Group is a Microsoft Advanced Specialization Partner with Solutions Partner designations in Modern Work, Digital & App Innovation, Infrastructure and Data and AI. The group is championing business transformation for major verticals Across MEA, UK, US and Canada. We are focused on helping enterprise and midsize businesses transform their core operations to become agile, scalable and simplified by leveraging the expansive technology innovations, speed, reduced cost and unparallel flexibility resident in Microsoft Cloud. Our future-geared approach to Microsoft Cloud practices won us both the 2017, 2021 and currently 2024 Microsoft Partner of the Year for Nigeria and Botswana
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