Artificial intelligence (AI) is rapidly reshaping the business world, and companies are taking notice by significantly increasing their investments. According to research published by Lenovo, spending on AI is expected to grow by 61% year-on-year in 2024, with IT leaders increasingly seeing the technology as a ‘game changer’.
The new IDC eBook, sponsored by Lenovo, ‘CIO PlayBook 2024: It’s all About Smarter AI’, found that 40% see AI as a ‘game changer’. The research also found businesses across Europe, the Middle East, and Africa (EMEA) are projected to boost their spending on AI by a staggering 61% in 2024 compared to the previous year, underscoring the growing recognition of AI’s potential to drive innovation and operational efficiency.
Generative AI (Gen AI), which enables the creation of new content like text, images and code, is particularly capturing the attention of enterprises. A remarkable 97% of organisations have either invested in Gen AI or plan to do so within the next year. This widespread adoption is fueled by the technology’s ability to streamline processes, enhance creativity, and unlock new possibilities across various industries.
However, Gen AI is just one aspect of the broader AI revolution. Businesses are also channelling significant resources into interpretative AI, which helps analyse and derive insights from data, and machine learning, which enables systems to learn and improve from experience without being explicitly programmed.
“We are at a point where AI is becoming a reality for organisations in every territory and every sector,” says Giovanni Di Filippo, EMEA President of Lenovo Infrastructure Solutions Group. “CIOs are eagerly embracing the potential of not only generative AI, but also interpretative AI, and will have to make the right tech investments and partnerships to maximise AI value for their organisations.”
The enthusiasm for AI extends across industries, with manufacturing companies leading the charge, as 47% of them hail AI as a ‘game changer.’ Even traditionally cautious sectors like government and finance are embracing the technology, with half or more of organisations in these domains having already invested in generative AI.
While the potential benefits of AI are clear, challenges remain. Concerns over data privacy, the capability limitations of AI models, and the potential misuse of the technology are among the top challenges cited by business leaders. Additionally, addressing employee fears around job displacement and fostering an AI-friendly culture within organizations are critical issues that must be addressed.
Despite these hurdles, the momentum behind AI adoption shows no signs of slowing down. “There is a growing consciousness across every sector that AI offers potential to boost efficiency and competitiveness,” comments Neil Ward-Dutton, VP AI, Automation & Analytics Europe at IDC. “CIOs should take this opportunity to invest in core enabling technologies, and ensure that AI expertise is not located within one single team, but spread throughout the organisation.”
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