Cos Expected to Up Gen AI Investments by Half This Year

Companies worldwide are expected to spend 50% more on adopting generative AI (GenAI) technologies in 2025 compared to last year, according to a report from an American technology research and IT advisory firm.

- Jas Bardia & Varun Sood

BENGALURU:

This, even as analysts and management are divided on how the technology's rise will impact India's $254-billion IT services industry.

Two years after the launch of ChatGPT ushered GenAI into everyday discussions, US-based Information Services Group (ISG) in a September 2024 report said it expects companies globally to spend 6.5% of their total tech spending on GenAI in 2025.

According to Connecticut-headquartered ISG, in 2024, the most use cases of GenAI were in customer service functions as part of chatbots and BPO (business process outsourcing). This year will be no different.