Worldwide End-User Spending on GenAI Models to Total $14.2 Billion in 2025: Gartner
According to Gartner, worldwide end-user spending on generative AI
(GenAI) models is projected to total $14.2 billion in 2025. End-user spending
on specialized GenAI models, which include domain-specific language models
(DSLMs), is estimated to total $1.1 billion in 2025.
Specialized GenAI models are trained or fine-tuned on
industry or business process-specific data. The way DSLMs are developed and
deployed results in an impact that exceeds the direct spending they generate.
Gartner predicts that by 2027, more than half of the GenAI
models used by enterprises will be domain-specific (that is, specific to an
industry or business function), up from 1 percent in 2024.
"Foundation GenAI models (including LLMs) are trained on
vast amounts of data and used for many different tasks. They are the first
models supporting GenAI and will continue to represent the largest area of
spending by organizations in the coming years," said Arunasree Cheparthi,
Senior Principal Research Analyst, Gartner. "However, organizations are
also turning to more domain-specific or vertical GenAI models because they
offer improved performance, cost, reliability and relevance in targeted
enterprise use cases over foundation models."
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