Get ready for even more AI at work - business spending set to double this year

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Lenovo research predicts IT budgets will soon consist of 20% AI
Investments in AI tech will rise 104% in 2025
Hybrid, on-prem and AI PCs are “key”, report claims

New research by Lenovo has revealed AI spending could account for as much as a fifth (20%) of IT budgets this year, up from 13% in 2024.

The company's research claims IT decision-makers across EMEA reported higher satisfaction rates with their AI projects over the last 12 months, leading them to expect increases in their investments this year by as much as 104%.

Nearly all (94%) AI projects at least met expectations in the region, with nearly one in three (31%) exceeding them, putting EMEA ahead of North America, where only 16% of projects exceeded expectations.

Businesses are starting to see rewards from AI

Up until now, optimism hasn’t always been met with the same level of tangible success, but the fact businesses are now being able to see the results proves that AI wasn’t just a fad after all.

“The EMEA markets present a diverse landscape of AI adoption and it is clear that most organisations have moved past the hype phase of AI and have shifted focus from experimentation to full implementation," noted Lenovo’s President of EMEA for Infrastructure Solutions Group, Giovanni Di Filippo.

Looking ahead, companies are expecting to increase their generative AI focus from 12% to 44% over the next 12 months – a stark rise. One key area for increased spending includes developing and managing AI models (32%, up from 22% last year), proving enterprises and many other businesses are seeking to regain control over how they use AI at work.

However, time and time again we’re faced with the same challenges, and it’s clear that businesses haven’t overcome them yet.

Lenovo highlighted how poorly prepared data poses an obstacle for AI implementation, with 29% acknowledging they have data quality issues. Others states that the enforcement of their AI governance, risk and compliance (GRC) policies is limited (26%), with an alarming 22% of the surveyed businesses presenting no plans to establish AI GRC policies.

To address at least some of the concerns, Lenovo believes, “hybrid infrastructure is key.” Two-thirds (65%) of organizations across EMEA are already using on-prem or hybrid as their primary architecture, with 18% preferring public cloud.

AI PCs are also set to play a role in localizing AI capabilities, with 65% planning on using the devices soon. Separately, Canalys Principal Analyst Ishan Dutt predicts that AI PCs could account for 35% of the PC sector in 2025; previous predictions for the final quarter of 2024 had this at 20%, indicative of significant growth in the year to come.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!