"The amount of money that organizations invest in AI shows no signs of abating. Worldwide spending on AI is forecast to reach $2.52 trillion in 2026, a 44% year-over-year increase, according to tech analyst Gartner. However, there's a twist in the tale. With AI slipping into the abyss in Gartner's Hype Cycle for Emerging Technologies, boards are starting to ask tougher questions about the money spent on AI explorations, and digital and business professionals will be expected to turn dollars and cents into tangible benefits."
"ZDNET reported last year that several areas of AI have slipped into the Trough of Disillusionment, where interest in a technology wanes because explorations fail to deliver promised returns. That's exactly where generative AI finds itself right now, with hype fading and business leaders questioning the ROI. Many organizations have barely found a way to make the most of the technology. Now, interest in gen AI appears to be waning, and the bubble surrounding the emerging technology could be about to burst."
"Many organizations have barely found a way to make the most of the technology. Now, interest in gen AI appears to be waning, and the bubble surrounding the emerging technology could be about to burst. Yet John-David Lovelock, chief forecaster and distinguished VP analyst at Gartner, told ZDNET in a one-to-one interview that the slide should be seen as a sign of hope. Slipping into the trough allows everyone to think much more carefully about their investments in gen AI."
Worldwide AI spending is projected to rise sharply to $2.52 trillion in 2026, signaling sustained investment momentum. Generative AI is moving into the Trough of Disillusionment, with fading hype and growing skepticism about ROI. Boards are increasing scrutiny of sunk AI expenditures and demanding clearer financial and operational returns. Many organizations struggle to realize value from AI explorations. The downturn creates an opportunity to reassess priorities, focus on capacity building, forge strong partnerships, and pursue co-development approaches that translate AI investments into tangible, measurable benefits.
Read at ZDNET
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