Among the other effects artificial intelligence might be having on enterprise information technology spending, it appears there is a shift underway from application software to AI.
The Boston Consulting Group finds enterprises are deliberately reallocating budgets from mature categories such as enterprise resource planning and traditional application software to fund AI, cloud, and security initiatives.
The Information Services Group predicts enterprise AI spending will grow nearly six percent in 2025, while overall IT budgets are expected to increase by less than two percent.
Researchers at A16Z argue that enterprise AI spending is now competing directly with traditional enterprise software purchases.
IDC meanwhile argues that 66 percent of all software spending will go toward AI-enabled applications and platforms through 2028. Other studies confirm the general trend.
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