Dive Brief:
- Most organizations are reworking software buying patterns to focus on AI, according to a G2 report published Monday. More than 4 in 5 surveyed software buyers say AI functionality is a determining feature in future software purchases.
- AI buyers are more bullish on spending than their counterparts. Nearly 3 in 5 AI buyers expect increased spending in 2024, 10 percentage points higher than the overall sentiment, according to the software marketplace and review website survey of 1,700 global software buyers.
- AI buyers are more often than not involved in deals larger than $50,000, and nearly three-quarters of AI buyers are involved in deals larger than $100,000.
Dive Insight:
The AI software market is anything but somnolent. With flashy new tools and the allure of productivity boosts, many tech leaders are working with senior leadership and their IT teams to identify AI use cases.
Asset management company Vanguard is in the early stages of generative AI experimentation, with a focus on responsible adoption, according to CIO Nitin Tandon.
“At Vanguard, we’re prudently experimenting with all generative AI has to offer and are excited to find new and innovative ways to evolve our strategy in the best interest of our clients,” Tandon said in an email.
The company is testing generative AI across three areas: knowledge management, content creation, coding and software development. Tandon said the goal is to boost operational efficiency and create value for clients.
Global software spending is projected to grow 12.3% this year, according to Gartner data. Software spending is a driving factor of much of the growth in overall IT spend, which Gartner expects to rise 5.5% this year.
While generative AI’s potential upsides are appealing to many businesses, the fast-evolving technology requires governance.
Due to its need for copious amounts of data, businesses must ensure there are guardrails for data protection and security. G2 data shows more than half of software buyers have purchased shadow IT, ignoring established IT and cybersecurity vetting processes.
