GenAI Investment to Grow 30%, with High Maturity Companies Projecting Three Times Higher ROI Over the Next Three Years than Low-Adoption Peers
Boston Consulting Group’s Seventh IT Spending Pulse Survey Reveals Steady Modest Increase in Global IT Budgets, Rising to 3.3% in 2024 from 3.2% the Previous YearLeaders Will Focus Spending in High-Growth Areas, Including Artificial Intelligence and Machine Learning, Security Infrastructure, Cloud Services, and AnalyticsThe Primary Barrier to GenAI Adoption is the Technology’s Immaturity, Cited by 43% of High-Maturity Companies, 36% of Mid-Maturity Companies, and 50% of Low-Maturity CompaniesGenAI Allocation is Expected to Rise From 4.7% to 7.6% by 2027, with a 60% Growth Forecast Over the Next Three YearsBOSTON—With modest GDP growth and stagnant budgets, organizations around the world are finding it necessary to reallocate funds from mature areas to support IT investments. While cloud and security continue to be key priorities, generative AI (GenAI) is increasingly taking the spotlight as companies strive for significant productivity improvements. GenAI investment is expected to grow 30%, with leaders from companies with high GenAI maturity anticipating their return on investment will be three-times higher over the next three years than that of companies with little or no adoption of the technology, according to a new report by Boston Consulting Group (BCG) released today.