Gartner forecast: AI providers under pressure, GenAI expected to become standard in under three years

The advent of artificial intelligence (AI) is fundamentally reshaping the technology industry. As analyst firm Gartner notes in its recent report "The AI ​​Vendor Race", it is no longer enough for tech vendors to simply offer an AI tool. They must clearly demonstrate the business benefits to survive in what is a very dynamic environment.

GenAI is becoming a must-have

The market is changing rapidly: the advantages of generative AI (GenAI) are eroding much more quickly than in other innovation cycles. Gartner predicts that GenAI features will become a baseline requirement, i.e., standard for all software offerings in less than 36 months. This development has far-reaching consequences:

• Spending shift: By 2026, more money will be spent globally on software that integrates GenAI than on software without these features.
• Market explosion: The market for GenAI models is expected to grow by 149.8% in 2025, exceeding the $14 billion mark. Hardware is also following suit: The market for AI-optimized servers is expected to grow by 90.9% in 2025.

Anthony Bradley, Group Vice President at Gartner, stresses:

"The AI vendor race is not a single race with a clear finish line, but rather a series of overlapping competitions."

Focus on business value is key

The greatest pressure is on tech vendors, who need to sell AI not just as a feature, but as a real solution to problems. Gartner warns that less than 20% of GenAI projects will achieve their desired business value by 2026.

To close this gap, product managers must shift from a functional, purely use-case-oriented approach to solutions that are directly tied to business-critical initiatives. Those who miss making the shift risk losing relevance in the AI race.