Worldwide end-user spending on Generative AI (GenAI) models is forecast to reach $14.2 billion in 2025, according to research and consulting firm Gartner.
Spending on foundation GenAI models, which include large language models (LLMs), is expected to remain the largest segment, growing from $5.4 billion in 2024 to $13.1 billion in 2025. This represents a 141% increase year over year.
Gartner also predicts that by 2027, more than half of GenAI models used by enterprises will be domain-specific, up from just 1% in 2024. In total, worldwide end-user spending on GenAI models is projected to grow by 148% from 2024 to 2025.
“Foundation GenAI models, including LLMs, are trained on vast amounts of data and used for many different tasks,” said Arunasree Cheparthi, research analyst at Gartner. “They are the first models supporting GenAI and will continue to represent the largest area of spending by organizations in the coming years.”
Specialized GenAI models, which are designed for specific industries or business functions, are projected to see end-user spending grow from $302 million in 2024 to $1.1 billion in 2025, an increase of 279%.
“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,” Cheparthi said.
These models are developed or fine-tuned using domain-specific data, which Gartner notes can improve relevance and reliability in targeted use cases.
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