Top 10 Worldwide IT Industry Predictions for 2024:
IDC recently released its highly anticipated FutureScape report titled “IDC FutureScape: Worldwide IT Industry 2024 Predictions.” The report provides insights into the future of the IT industry with a particular focus on the role of artificial intelligence (AI). Let’s explore the key findings and highlight the profound impact AI is expected to have on technology and business operations.
The predictions emphasize AI as a groundbreaking development in the technology field. While AI is not a new concept, the release of OpenAI’s GPT-3.5 series in late 2022 acted as a catalyst, generating significant interest, and leading to increased investments in generative AI. As a result, IDC predicts that global spending on AI solutions will exceed $500 billion by 2027.
This surge in investment will shift in technology spending towards AI implementation and the adoption of AI-enhanced products and services. According to Rick Villars, Group Vice President of Worldwide Research at IDC, “Every IT provider will incorporate AI into the core of their business, investing treasure, brainpower, and time.” This marks a significant shift in mindset for CIOs and digitally savvy C-Suite leaders. While the pivot towards AI offers exciting opportunities for innovative products and services, there are challenges such as uncontrolled cost increases and potential loss of data control due to the proliferation of “now with AI” options.
IDC’s FutureScape 2024 research focuses on external factors reshaping the global business in the next 12 to 24 months. It also explores the challenges that IT teams face in defining, building, and governing technologies. To better understand these predictions, let’s explore IDC’s top ten worldwide IT industry forecasts:
Prediction 1: Core IT Shift
IDC expects organizations to allocate over 40% of their core IT spend to AI-related initiatives by 2025, leading to a double-digit increase in product and process innovations.
Prediction 2: IT Industry AI Pivot
The IT industry will be impacted the most by AI, with companies racing to introduce AI-enhanced products and services and assist customers with AI implementations. AI will replace cloud as the primary driver of innovation.
Prediction 3: Infrastructure Turbulence
AI spending will be constrained until 2025 due to workload and resource shifts, silicon supply uncertainty, networking and facilities shortcomings, lack of model confidence, and AI skills gaps.
Prediction 4: Great Data Grab
In an “AI Everywhere” world, data becomes a crucial asset for feeding AI models and applications. Technology suppliers and service providers will invest in additional data assets to enhance their competitive position.
Prediction 5: IT Skills Mismatch
Inadequate training in AI, cloud, data, security, and emerging tech fields will hinder enterprise success. Underfunded skilling initiatives will prevent 65% of enterprises from fully benefiting from their tech investments until 2026.
Prediction 6: Services Industry Transformation
The rise of AI will shift human-delivered services, impacting strategy, change, and training. By 2025, 40% of service engagements will include GenAI-enabled delivery, which influences everything from contract negotiations to IT Ops to risk assessment.
Prediction 7: Unified Control
Navigating the maturation of control platforms will be a significant challenge. These platforms will evolve from addressing basic systems to becoming standard platforms that coordinate operations across infrastructure, data, AI services, and business applications and processes.
Prediction 8: Converged AI
Organizations should not delay existing or other AI investments due to the fascination with GenAI. They must explore, try, and implement fully converged AI solutions that address new use cases and customer needs at lower costs.
Prediction 9: Locational Experience
The accelerated adoption of GenAI enables organizations to enhance edge computing use cases with contextual experiences aligned with business outcomes and customer expectations.
Prediction 10: Digital High Frontier –
Satellite-based internet connectivity will bridge the digital divide and enable new capabilities and business models. By 2028, 80% of enterprises will integrate LEO satellite connectivity, creating a unified digital service fabric to connect everywhere and share data easily.
IDC’s FutureScape predictions present a convincing vision of the IT industry’s future, with AI at the forefront of innovation and transformation. The report highlights the impact AI is expected to have on technology spending, business operations, and the overall digital landscape. As companies increasingly allocate resources to AI initiatives, we can predict a rise in product and process innovations, with AI becoming the primary force of innovation in the IT industry.
However, challenges such as infrastructure limitations, data management, skills gaps, and control platform need to be addressed to propel the potential of AI. By embracing AI, organizations can unlock new opportunities and reach new heights. The IDC FutureScape report emphasizes how AI will shape the future of the IT industry and calls for proactive investments and strategic planning to channel its transformative capability.