2025-07-01 00:40Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The survey indicates that Nvidia, Microsoft, and OpenAI continue to dominate the AI landscape, with a focus on identifying potential tailwinds and headwinds for other players in the market [2][4] - 100% of surveyed organizations are in the AI investigation stage, but only 14% are in production at scale, highlighting a slow adoption curve [3][8] - The average AI spend per organization is $3.27 million, with larger companies spending more, indicating that AI investments are still in early stages [3][56] Overall Enterprise AI Adoption - 100% of respondents are investigating AI use cases, but only 14% are in production at scale, suggesting a slow adoption curve [3][8] - The average AI spend per organization is $3.27 million, representing only 0.4% of the average IT budget of $806 million [56] - The most frequently cited hurdle for AI adoption is "unclear ROI," with 72% of respondents indicating that AI spending would displace other IT budget items [8][62] Key Players and Market Dynamics - Nvidia remains the preferred platform for both training and inference, with 86% of respondents choosing Nvidia for training and 87% for inference [12][4] - Microsoft maintains a strong lead in hosting AI workloads, followed by AWS, with only 13% of enterprises reporting material GPU constraints [10][4] - OpenAI's models dominate the enterprise market, with Google Gemini emerging as a significant competitor [11][4] Application and Data Software Trends - Microsoft M365 Copilot and GitHub Copilot are leading applications in their respective markets, with significant adoption among enterprises [5][16] - The DIY option for AI solutions is gaining traction, indicating a shift away from third-party software [19][5] - Data software firms are expected to benefit from increased AI spending, particularly in cloud-based data warehouses [17][5] IT Spending Outlook - The average expected increase in IT budgets for 2025 is 4.4%, unchanged from the previous survey, indicating a stable spending outlook [38] - 72% of respondents expect AI spending to displace other IT budget items, with a notable increase in the desire to consolidate IT solutions [62][66] - The survey results suggest that enterprises are likely to defer back-office investments to fund AI initiatives [66][8]