Artificial intelligence (AI) projects comprise up to 10% of companies' IT budgets.
That's according to a Sunday (May 12) report from Seeking Alpha, citing Wedbush research. As the report notes, it is a A dramatic leap in AI spending, which was less than 1% of IT spending last year.
“While the first wave of the AI revolution was led by AI Jensen and the godfathers of Nvidia, along with Nadella/Redmond … now the 2nd/3rd/4th derivatives of that $1 trillion spend are hitting shores over the next decade. Tech sector,” said a Wedbush note.
“We're seeing more breadcrumbs on a wave of unprecedented AI spending. Arm Holdings, Palantir, Oracle And Others that have fueled this enterprise AI spending cycle,” the Wedbush report added.
The results come as tech giants like Meta, Apple And Microsoft is investing heavily in AI projects. For example, Metta last week unveiled new generative AI tools that allow businesses Create images for advertisementsWhile Microsoft has recently expanded its AI assistant focus. Partnership With ServiceNow.
“We see it strongly as Microsoft. 'The iPhone Moment' With AI poised to change the pace of cloud development in Redmond over the next few years, our recent checks provide further confidence in this dynamic,” added Wedbush.
Last week also saw the announcement of Microsoft's planned $3.3 billion data hub in Wisconsin designed to teach employees and manufacturers how to make better use of AI. is part of a growing wave of Massive investment In AI infrastructure and training.
“Assuming the infrastructure is built, companies will have access to more. Advanced AI Capabilities,” Tech Analyst Lawyers Vincalek Told PYMNTS. “For example, more sophisticated machine learning algorithms can help analyze larger and larger datasets in shorter time frames. Or improved natural language processing. in fact Serve customers better with AI.”
Meanwhile, PYMNTS last week reviewed New York's efforts to compete with San Francisco and Seattle as the go-to destination for advanced technologies like AI.
“If New York learns how Attract engineering AI talent. Faster than the Bay Area and more effectively retaining that talent, communities will be created where engineers and entrepreneurs passionate about AI can interact, share ideas, and learn from each other. And Drive Innovation” Igor Oltianoco-founder and CEO Volt AIsaid in an interview with PYMNTS.
“Silicon Valley is a beautiful place between the sea and the mountains with California weather nearby — what is New York willing to do to attract talent and keep them there instead?”
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