Gen AI Impact: Insights From Gartner IT Symposium/Xpo 2023Gartner Analysts Aron and Mishra on India's IT Spending Projections and AI Future
The inaugural day of the Gartner IT Symposium/Xpo 2023 in Kochi, India, highlighted AI and human-machine relationships as central themes for the future of IT and business. Gartner studies reported that 51% CEOs expect their CIOs to drive the generative AI agenda for their enterprises and transition from everyday AI to groundbreaking AI.
A June 2023 Gartner survey of 606 CIOs and technology leaders revealed that only 9% of organizations had an AI vision statement; however, more than one-third of respondents expressed no intention to develop such a statement. This underscores that only a limited number of organizations had lighthouse principles or a distinct vision for the implementation of AI.
"More than 90% of CIOs in our survey are looking at AI as one of their most important priorities," said Naveen Mishra, VP, team manager at Gartner. "We recommend that they think of AI in two ways: productivity and back-office efficiency, which is more internal; and external or customer-facing."
Gartner identified two approaches that organizations may take to navigate their AI journey: everyday AI (workforce productivity and efficiencies) and game-changing AI (new products, services, innovation and customer experiences).
"For game-changing AI, three tough conditions have to be met. You will need a lot of risk tolerance, a lot of executive patience and boat-loads of money," said Dave Aron, VP and distinguished analyst, Gartner, in his opening keynote.
Gartner recommended the following action points to help organizations adopt generative AI in the next 12 months:
- Implement principles for AI readiness: The organization's values and lighthouse principles should be aligned, and these values must help in elucidating underlying mechanisms of human-machine interactions;
- Ensure data is AI-ready: To ensure AI readiness, data must be secure, enriched, fair, accurate and governed by the enterprise's lighthouse principles;
- Establish AI-ready security: CIOs need to anticipate potential misuse of AI, address new attack vectors and establish an acceptable use policy for public generative AI solutions.
Investments in AI
Gartner also revealed its 2024 IT spending forecast for India. The overall IT spending - projected to total $124.6 billion in 2024, an increase of 10.7% from 2023 - comes from software and IT services. Organizations are investing in IT services due to skill shortage. Investments in cloud and related technologies like SASE will also contribute to growth in IT services investments.
"While investments in AI and gen AI will contribute to IT spending growth in India, their impacts on IT spending levels will not be evident until 2025. Gen AI will account for a small portion of IT spending through 2024," Mishra said.
Investments in 2024 are anticipated toward AI and automation as Indian organizations make strategic efforts to improve operational efficiency and address the ongoing shortage of IT talent.
"As Indian organizations accelerate the adoption of digital technologies such as AI, machine learning, SASE, there will be a greater implementation of cloud services, resulting in growth for both software and IT services," Mishra said. "The lack of internal skills within Indian businesses will also contribute to the growth of IT services spending in 2024."
Spending on software and IT services is projected to experience the highest annual growth rates in 2024 in India, with software spending expected to increase to 18.5% and IT services forecast to grow to 14.6%.
As generative AI continues to present unique opportunities for organizations and becomes part of IT budgets, CIOs and IT leaders are required to define their organization's AI ambition and strive to understand its opportunities and risks across various domains, including back office, front office, new products and services, and new core capabilities.