Gartner Research

Crossing the Chasm: Tech Provider Plans for Generative AI in 2024

Generative AI sits at the Peak of Inflated Expectations; however, strong hype does not always mean strong revenue growth.

Experts: Mark McDonald, John-David Lovelock, Whit Andrews

Despite its double-digit revenue growth, AI is forecast to represent only 15% of total enterprise IT spending by 2027. Most of that revenue will come from displacing IT spending from different areas rather than from net new IT spending.

The speed at which GenAI climbed to the peak of expectations — in a matter of months — was driven by highly visible and readily understandable consumer-oriented examples. In reality, effective enterprise adoption requires more than entering questions into a prompt. Without a focused roadmap, providers will suffer when the market makes its fast slide into the Trough of Disillusionment.

Providers seeking GenAI-fueled growth must adopt a roadmap that not only focuses on business outcomes and productivity improvements, but also advances a customer-centric plan for value realization.

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