AI investment surges… “Doubling by 2028”

While the ROI of many AI projects remains uncertain, one thing is clear. CIOs will spend significantly more on this technology in the coming years. Research firm IDC expects technology spending on AI strategies to reach $337 billion globally in 2025 and more than double to $749 billion in 2028.

These aggressive numbers don’t come as a surprise to CIOs, given that IT leaders in nearly every industry are attempting generative AI proofs of concept, and some are already in production. For example, Nate Melby, CIO of Dairyland Power Cooperative, a utility in the Midwest, said he is developing a large-scale language model (LLM) to help not only automate document summarization but also manage the grid during storms.

Marcy MacLennan, a global professional services company, operates approximately 40 next-generation AI applications. The company’s CIO, Paul Beswick, said that number is expected to rapidly increase as efficiency and revenue-generating innovations are proven. JP Morgan Chase has made numerous generative AI investments not only in its investment business, but also in Chase Travel, contact centers, operations centers, and credit card service bureaus.