Investing in AI: AI Purchasing Predictions for 2025

More companies than ever before will begin investing in AI in 2025, with a particular focus on generative AI and cutting-edge applications, according to recent reports.

Gartner’s IT spending projection report for 2025 highlights that this year will see the biggest spending increase of the century (9.3%), thanks largely to rising demand for AI among CIOs. Elsewhere, the Telarus Tech Trends report for 2024 to 2025, notes that 53% of respondents have indicated “AI” is a key driver behind their current tech buying decisions, compared to only 13% in 2023.

There’s little doubt that demand for artificial intelligence is growing, as companies look for ways to enhance efficiency, adapt to rising security threats and changing customer service trends, and improve innovation. However, investing in AI won’t be completely straightforward for businesses either. There are still numerous challenges to overcome.

Here are our predictions, based on the latest market reports, insights, and vendor discussions, outlining the key trends for AI investment in 2025.

AI Investment and Cloud Technologies Combined

A growing need for AI-powered applications and tools, such as generative AI bots and CX systems, will make investing in the cloud even more essential for businesses in the years ahead. According to Telarus’ report, almost half of IT buyers are currently looking at cloud technologies to help with scaling software deployment, enhance application monitoring, and improve resource allocation.

The report notes that many mid-market organisations will be rapidly shifting legacy technology stacks into the cloud, to improve cost efficiencies, and increase productivity gains. Alternatively, large enterprises may begin shifting into new hybrid, on-prem, and multi-cloud infrastructures, to pave the way for rapid advancement and innovation.

These findings align with the insights from Gartner’s IT spending report for 2025, which suggests that demand for software-as-a-service, and cloud-based technologies will continue to increase, as businesses replace old-fashioned and outdated technologies with more scalable infrastructure.

Businesses everywhere will be looking not just for more versatile cloud deployment options, but cloud ecosystems that can offer the perfect combination of agility, and security, as new threats emerge. Hybrid cloud environments may see an increase in popularity, thanks to their ability to help businesses of different sizes maintain control over their data and processes.

Companies Will Struggle with Self-Built Solutions

Gartner found that, throughout 2024, spending on advanced data center systems increased drastically (by around 35%), as larger companies began building the infrastructure required to develop their own dedicated artificial intelligence applications. Spending in this area is likely to diminish slightly in 2025, as the CIO community investing in AI will be prioritizing pre-built solutions.

Forrester predicted, in a recent report, that three out of four of the firms that attempt to build aspirational architectures for autonomous agents will fail in 2025. The analyst notes that demand for autonomous agents is increasing, but building architecture from scratch is far too complex and convoluted for most companies.

Instead, more mature companies are likely to collaborate with service providers and systems integrators to customize pre-built solutions according to their specific needs. This prediction corresponds with Gartner’s insights, suggesting that business leaders will be looking for simpler ways to take advantage of the latest AI advancements, without having to purchase advanced server systems, or invest in new talent in a skills-short environment.

Increasing Focus on AI in CX and Operational Improvements

Investing in AI gives today’s technology buyers an opportunity to optimise the return on investment in many different tech “swim lanes” in 2025. Companies are rapidly recognizing opportunities to use AI to enhance everything from supply chain management to collaboration.

For the most part, however, based on Telarus’ research, and the trends we saw discussed at this years’ DTX London event, companies will be prioritising AI solutions for customer service, and operational improvements. Teams will be looking for applications, integrations, and tools that can help them break down data silos, improve collaboration and communication, and boost productivity.

A report from TechTarget supports this prediction, noting that two thirds of EMEA decision-makers are planning on using AI to enhance their Enterprise Resource Planning strategies.

Alongside finding ways to boost efficiency, using AI to improve customer service strategies will deliver rapid results for business leaders.

Many respondents in Telarus’ report said that they’ll be using AI assistants, bots, AI data analytics, and real-time agent assist tools to enhance customer service results and improve customer satisfaction in the year ahead. This makes sense, particularly as customer expectations for ultra-personalized and seamless experiences across channels continues to grow.

Investing in AI, Cybersecurity, and Governance

Although companies are becoming increasingly aware of the benefits of investing in AI, there’s significant fear, uncertainty, and doubt to overcome. Around 63% of respondents in Telarus’ study said that they were worried about managing data security in the age of AI.

The same survey found “cybersecurity” to be the second most important driver for IT investments (behind AI), suggesting that many companies will be taking a unified approach to updating cybersecurity, and AI technologies at the same time. With US cybercrime costs expected to reach a value of $1.82 trillion by 2082, and AI solutions offering criminals more sophisticated ways to gain access to data, every company will need to find a way to increase their defences.

About 60% of IT leaders are already looking at AI-enabled cybersecurity solutions to help them enable real-time data loss prevention, and monitor threats in real-time. Over half of the respondents in Telarus’ survey also said they’re planning on investing in AI for cyberattack prevention.

Of course, while AI can help companies safeguard their data to a certain extent, implementing AI comes with its own data and compliance risks to consider.

Forrester’s predictions report suggests around 40% of highly regulated enterprises will combine data and AI governance moving into 2025. This will be crucial as companies continue to understand the risks associated with AI technologies, and new regulations, like the EU AI Act, emerge.

Businesses Will Rely More on Tech Advisors

Significant AI skill shortages, and a lack of digital literacy in the modern landscape is making it harder for businesses to develop their own AI investment strategies with confidence. With budgetary constraints, security risks, and implementation issues to consider, companies can’t afford to simply “follow the trends”. They’ll need guidance to make the right tech decisions.

In 2025, around 92% of mid-market respondents in Telarus’ study said that they’re planning on meeting with a technology advisor to guide them towards the right buying decisions. One in three enterprise companies plan on taking the same approach.

Overall, the majority of IT leaders are open to partnering with objective partners who can help them make the most out of their investments, and reduce risks. This aligns with Gartner’s projection that spending on IT services (like consultation) will increase by almost 10% in the year ahead.

Business leaders and CIOs will be looking for advisors that can help them to choose the right AI solutions, implement and customize their technology, analyze and prepare data, and manage security risks. They’ll also be turning for help from IT leaders to ensure their strategy for investing in AI aligns with their wider business goals, and a growing focus on sustainable purchasing patterns.

Economic Uncertainty Will Affect AI Investment

Economic uncertainty continues to be a major issue throughout the tech landscape. However, as Gartner, Forrester, and many other analysts have noted, this doesn’t seem to prevent companies from investing in cutting-edge technology. Although around 84% of companies are already bracing for an economic recession, most are unwilling to fall behind the competition in the AI race.

Instead, business leaders seem to be pausing larger investments in general-purpose hardware and technology, to ensure they can afford to pay for the AI solutions they need. Many firms believe that the improved efficiencies that come from adding AI into processes, alongside the labor costs, and increased productivities offered by these tools, will improve long-term financial performance.

The challenge will be in finding ways to make sure “spending cutbacks” in other areas don’t affect progress. Additionally, according to Forrester, business leaders will be prepared to show some patience. Companies that fail to see instant results from AI adoption might decide to scale back prematurely, which could harm their ability to compete in the long-term.

That’s why it’s so important for businesses to define the right strategy, and find the best solutions for financing the process of investing in AI now. That’s something we’re aiming to support companies with here at TechGrants, with our innovative transformation grant, designed to give firms the no-strings-attached funding they need to accelerate digital transformation.

Investing in AI in 2025: Looking Ahead

Increasingly, companies are investing in AI at an accelerated speed. They’re turning to AI solutions to improve cybersecurity, customer experience, productivity, and overall performance. However, the purchase of AI technologies will come with challenges to address too.

Not only will companies need to think carefully about their cloud infrastructure, to ensure that their AI solutions can scale, but they’ll need to work with specialists to pinpoint the best investment strategies, take a meticulous approach to data governance, and ensure they’re financing their strategy correctly.

At TechGrants, we offer a range of solutions to help businesses of all sizes through their AI investment journey. We provide expert consultation and support to help you choose the right AI applications, platforms, cloud systems, and security technologies. Plus, we can help you access the funding you need to finance your AI strategy.

Contact us today to learn more about how we can help you develop an effective strategy for investing in AI that helps you to stay ahead of the competition and increase your return on investment.