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Lenovo Research Indicates IT Budgets Will Allocate 20% to AIAI Investments Expected to Surge by 104% in 2025Hybrid Infrastructure and AI PCs Critical for Future Success, Reports Suggest
According to fresh findings from Lenovo, spending on artificial intelligence may rise to represent as much as 20% of IT budgets this year, a notable increase from the 13% recorded in 2024.
The research highlights that IT leaders across the EMEA region reported notably higher satisfaction with their AI initiatives over the past year, prompting projections for investment growth of up to 104% in 2025.
An impressive 94% of AI projects in the EMEA met or surpassed expectations, with around 31% exceeding them. This places EMEA in a more favorable position compared to North America, where only 16% of AI projects achieved results beyond expectations.
Firms Starting to Reap Benefits from AI Investments
While optimism regarding AI has not always led to concrete outcomes in the past, businesses are now beginning to experience real benefits, proving the technology’s value beyond initial enthusiasm.
Giovanni Di Filippo, President of Lenovo’s EMEA Infrastructure Solutions Group, remarked, “The EMEA markets demonstrate a rich tapestry of AI adoption, indicating that many organizations have transitioned from hype to practical implementation.”
Looking forward, businesses anticipate a significant increase in their focus on generative AI, rising from 12% to an impressive 44% in the next year. A key driver for this spending surge is the development and management of AI models, which is expected to increase from 22% to 32%—reflecting companies’ efforts to maintain control over AI applications in their operations.
Despite these advancements, enterprises continue to grapple with various challenges that hinder progress. Notably, 29% of respondents recognized issues with data quality that are hampering effective AI implementation. Additionally, 26% of businesses reported limited enforcement of AI governance, risk, and compliance (GRC) policies, and concerningly, 22% have no plans to create such policies.
Lenovo advocates for hybrid infrastructure as a critical solution to these challenges. Currently, two-thirds (65%) of organizations in EMEA utilize on-premises or hybrid systems as their main architecture, with 18% opting for public cloud solutions.
AI-enabled PCs are also expected to play a pivotal role in enhancing AI capabilities locally, with 65% of businesses indicating plans to use these devices in the near future. Canalys Principal Analyst Ishan Dutt forecasts that AI PCs could constitute 35% of the PC market by 2025, revising earlier estimates that projected 20% for late 2024, underscoring expected substantial growth in the upcoming year.
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