Latest news with #ArunasreeCheparthi
Channel Post MEA
2 days ago
- Business
- Channel Post MEA
Gartner: Spending On GenAI Models To Total $14.2 Billion In 2025
Worldwide end-user spending on generative AI (GenAI) models is projected to total $14.2 billion in 2025, according to Gartner, Inc. End-user spending on specialized GenAI models, which include domain-specific language models (DSLMs), is estimated to total $1.1 billion in 2025 (see Table 1). Specialized GenAI models are trained or fine-tuned on industry or business process-specific data. The way DSLMs are developed and deployed results in an impact that exceeds the direct spending they generate. Gartner predicts that by 2027, more than half of the GenAI models used by enterprises will be domain-specific (that is, specific to an industry or business function), up from 1% in 2024. 'Foundation GenAI models (including LLMs) are trained on vast amounts of data and used for many different tasks. They are the first models supporting GenAI and will continue to represent the largest area of spending by organizations in the coming years,' said Arunasree Cheparthi, Senior Principal Research Analyst at Gartner. 'However, organizations are also turning to more domain-specific or vertical GenAI models because they offer improved performance, cost, reliability and relevance in targeted enterprise use cases over foundation models.'
Techday NZ
2 days ago
- Business
- Techday NZ
GenAI model spending to reach USD $14.2 billion globally in 2025
End-user spending on generative artificial intelligence (GenAI) models is forecast to reach USD $14.2 billion globally in 2025, according to research from Gartner. The research details a significant growth in expenditure, highlighting the emergence of specialised generative AI models, known as domain-specific language models (DSLMs), as an emerging category. Spending on these specialised GenAI models is projected to stand at USD $1.1 billion in 2025. Specialised models Gartner defines specialised GenAI models as those that are trained or fine-tuned with data specific to certain industries or business processes. These models are designed to deliver tailored outputs, offering targeted capabilities rather than the broader scope of general GenAI models. According to Gartner's Senior Principal Research Analyst, Arunasree Cheparthi, foundation GenAI models continue to be the largest area of investment. She stated, "Foundation GenAI models (including LLMs) are trained on vast amounts of data and used for many different tasks. They are the first models supporting GenAI and will continue to represent the largest area of spending by organisations in the coming years." Cheparthi went on to explain the growing trend towards more domain-specific solutions within enterprises, noting the perceived benefits in terms of cost and performance. She said, "However, organisations are also turning to more domain-specific or vertical GenAI models because they offer improved performance, cost, reliability and relevance in targeted enterprise use cases over foundation models." Market growth The data compiled by Gartner shows that spending on foundation GenAI models is expected to increase substantially, from USD $5.4 billion in 2024 to USD $13.1 billion in 2025, marking a year-on-year growth rate of 141.0%. Meanwhile, spending on specialised GenAI models is forecast to rise from USD $302 million in 2024 to USD $1.1 billion in 2025, a year-on-year increase of 279.2%. The overall market for GenAI models, which includes both foundational and specialised models, is projected to witness a 148.3% rise in spending in 2025 compared to 2024. Industry adoption Gartner's report also includes a prediction on the adoption trajectory of domain-specific models. Currently, these specialised models account for just 1% of GenAI models used by enterprises in 2024. However, Gartner predicts that by 2027, more than half of the GenAI models used by organisations will be domain-specific, reflecting a substantial shift in enterprise AI strategies. The report highlights that the method by which DSLMs are developed and implemented often leads to broader impacts within organisations beyond the direct spending figures. These models can offer advantages in applications where regulatory compliance, industry knowledge, or operational context are essential. Table: Worldwide end-user spending on GenAI models, 2024-2025 (USD millions) According to Gartner's data: Foundation GenAI Models: 2024 spending of USD $5,416 million, rising to USD $13,053 million in 2025 Specialised GenAI Models: 2024 spending of USD $302 million, rising to USD $1,146 million in 2025 Total GenAI Models: 2024 spending of USD $5,719 million, rising to USD $14,200 million in 2025 These figures reflect growth rates of 306.3% and 1010.2% for foundational and specialised models, respectively, in 2024, with continued high rates into 2025. Enterprise priorities The adoption of GenAI models is expected to remain a high priority for technology decision makers. The rapid increase in spending and the accelerated shift from foundational to domain-specific models suggests that organisations are actively seeking ways to improve relevance and utility in their AI investments. Gartner's analysis is based on its global data snapshot for GenAI model spending and detailed forecasts for the wider market, examining trends expected through 2029.
Hans India
3 days ago
- Business
- Hans India
Global end-user spending on GenAI models to reach $14.2 billion in 2025
New Delhi: A Gartner report said on Thursday that worldwide end-user spending on generative AI (GenAI) models is projected to reach $14.2 billion in 2025. End-user spending on specialised GenAI models, which include domain-specific language models (DSLMs), is estimated to total $1.1 billion this year. Specialised GenAI models are trained or fine-tuned on industry or business process-specific data. Gartner predicts that by 2027, more than half of the GenAI models used by enterprises will be domain-specific (that is, specific to an industry or business function), up from 1 per cent in 2024. 'Foundation GenAI models (including LLMs) are trained on vast amounts of data and used for many different tasks. They are the first models supporting GenAI and will continue to represent the largest area of spending by organizations in the coming years,' said Arunasree Cheparthi, Senior Principal Research Analyst at Gartner. However, organisations are also turning to more domain-specific or vertical GenAI models because they offer improved performance, cost, reliability and relevance in targeted enterprise use cases over foundation models, she mentioned. An earlier Gartner report had said that global generative AI spending is expected to reach $644 billion in 2025, a surge of 76.4 per cent from 2024. GenAI spending in 2025 will be driven largely by the integration of AI capabilities into hardware, such as servers, smartphones and PCs, with 80 per cent of GenAI spending going towards hardware. GenAI spending is poised for significant growth across all core markets and submarkets in 2025. GenAI will have a transformative impact across all aspects of IT spending markets, suggesting a future where AI technologies become increasingly integral to business operations and consumer products, the report had mentioned. Foundational model providers are investing billions annually to enhance GenAI models' size, performance, and reliability. This paradox will persist through 2025 and 2026.
