IT Spending Forecast 4Q25: Navigating GenAI’s Trough of Disillusionment

Global IT spending is accelerating, but generative AI (GenAI) is entering a critical phase — the trough of disillusionment. IT budgets are projected to surpass $7 trillion within four years, with GenAI accounting for more than $4 trillion by 2029. New markets, including AI models, specialized AI-managed services, and AI-optimized infrastructure, are emerging rapidly. Yet early GenAI projects have faltered, and CIOs are shifting focus toward partner-delivered solutions in 2026. This session provides Gartner’s latest forecasts and introduces the groundbreaking Tokenomics Model to help leaders navigate GenAI economics and plan with confidence.

Gartner’s updated IT spending forecast for 2025 and beyond.
How GenAI will reshape the software market and create new investment priorities.
Tokenomics and the strategy of hyperscalers.
Which new markets will emerge from GenAI — and what they mean for your planning.

Event Topic

Artificial Intelligence, IT, Technology

Relevant Audiences

All State and Local Government, All Federal Government

Other Agency

Other Federal Agencies