Artificial intelligence (AI) projects are expected to account for up to 10% of enterprise IT budgets.
That's according to a Sunday (May 12) report in Seeking Alpha magazine, citing Wedbush's research. As the report points out, it's a dramatic jump in his AI spending, which accounted for less than 1% of his IT spending last year.
“While the first wave of the AI revolution was led by the godfathers of AI, Jensen and Nvidia and Nadella/Redmond, we are now seeing the second, third, and fourth waves of this $1 trillion in spending over the next decade. derivatives of the technology sector are reaching the shores of the world,” Wedbush's memo said.
“More breadcrumbs on an unprecedented wave of AI spending from Arm Holdings, Palantir, Oracle, and others, reinforcing the company's AI spending cycle,” the Wedbush report adds.
The findings come as technology giants such as Meta, Apple and Microsoft are investing heavily in AI projects. For example, Meta announced last week a new generative AI tool that allows businesses to create images for advertising, and Microsoft recently expanded its AI assistant-focused partnership with ServiceNow.
“We strongly view this as an AI-powered Microsoft 'iPhone moment' that will change Redmond's cloud growth trajectory for years to come, and our recent checks provide further confidence in this dynamic. Wedbush added.
Last week also announced plans for Microsoft's $3.3 billion data hub in Wisconsin, designed to teach employees and manufacturers how to optimize their use of AI. This is part of a growing wave of large-scale investments in AI infrastructure and training.
“Once the infrastructure is built, companies will have access to more advanced AI capabilities,” technology analyst Vaclav Vincalek told PYMNTS. “For example, more sophisticated machine learning algorithms can help analyze increasingly large datasets in shorter time frames. Or improve natural language processing to actually use AI to help customers We can also improve our services.”
Meanwhile, PYMNTS last week examined New York's efforts to compete with San Francisco and Seattle as a leading destination for cutting-edge technologies such as AI.
“Learning how New York attracts engineering AI talent faster than the Bay Area and retains it more effectively will allow engineers and entrepreneurs passionate about AI to interact, share ideas, and learn from each other. It will create a community that can drive innovation,” Egor Olteanu, co-founder and CEO of Volt AI, said in an interview with PYMNTS.
“Silicon Valley is a beautiful place between the ocean and the mountains, and California's climate is almost perfect. What is New York willing to do to attract talent and keep it there? ?”
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