AI Projects to Comprise Up to 10% of Companies’ IT Budgets: Report

Artificial intelligence (AI) projects are on the rise, with companies expected to allocate up to 10% of their IT budgets to AI initiatives. This significant increase, as reported by Seeking Alpha citing Wedbush research, marks a dramatic shift from the previous year when AI spending accounted for less than 1% of IT budgets.

According to Wedbush, tech giants like Meta, Apple, and Microsoft are leading the charge in investing heavily in AI projects. Meta recently unveiled new generative AI tools for businesses, while Microsoft expanded its AI-assistant-focused partnership with ServiceNow. Wedbush even likened Microsoft’s focus on AI to an “iPhone Moment,” predicting a transformative impact on the company’s cloud growth trajectory in the coming years.

In line with this trend, Microsoft announced plans for a $3.3 billion data hub in Wisconsin aimed at educating employees and manufacturers on optimizing AI usage. This investment is part of a larger wave of infrastructure and training investments in AI capabilities across industries.

Tech analyst Vaclav Vincalek highlighted the potential for advanced AI capabilities with increased infrastructure, such as more sophisticated machine learning algorithms and improved natural language processing. Additionally, New York is positioning itself as a competitor to tech hubs like San Francisco and Seattle by attracting and retaining AI talent to drive innovation in the city.

As AI continues to reshape industries and drive technological advancements, companies are recognizing the importance of investing in AI projects to stay competitive in the evolving digital landscape. Subscribe to the daily AI Newsletter for more updates on AI developments and trends.