The Big G predicts that worldwide IT spending to reach $5.26 trillion this year, a 7.5 per cent increase from 2023. The impact of GenAI extends beyond software, affecting datacentre spending due to its compute power needs.

Gartner analyst John-David Lovelock said that GenAI's revenue gains often flow back to AI model provider partners. The industry is already benefiting from rising customer interest in AI. 

Datacentres are a logical starting point for addressing GenAI's demands. To fully unlock GenAI's potential, organisations need a data management strategy and modern infrastructure. This includes controlling data storage, access, and usage, enabling real-time data sharing, and maintaining a consolidated database infrastructure, Lovelock said.

Gartner also notes a continuing demand for IT services, though slightly down from last year. 

“The change fatigue in CIOs that we saw at the start of the year has now abated and the contract backlogs going back to the third quarter of 2023 are being cleared. We expect to see a larger rush towards the end of the year to make up for the slow start,” said Lovelock.