AI Vendor Race Is Reshaping Competition Across the Entire AI Technology Stack: Gartner
The AI vendor race is restructuring
the business of tech, and every tech provider must re-evaluate what it takes to
compete and win in this evolving landscape, according to Gartner, Inc., a
business and technology insights company.
With various AI
vendor races taking place across the AI technology stack (see Figure 1),
Gartner is examining which vendors are positioned to win these races, ranging
from large vendors, to rising contenders to new entrants.
In the Gartner
report The AI Vendor
Race: What It Takes to Win in Volatile Conditions, Gartner analysts
explain that traditional provider-enterprise value relationships will not drive
AI adoption, and it isn’t sufficient to sell an AI tool and expect customers to
find value.
“The AI vendor
race is not a single race with a clear finish line, but rather a series of
overlapping competitions, where the endgame can range from market leadership to
technological breakthroughs, or simply maintaining relevance,” said Anthony
Bradley, Group Vice President at Gartner.
“Vendors must pay
close attention to the frequent shifts in the market to gain advantage and
protect their position,” said Bradley. “It requires an understanding of
competitor capabilities and
their demonstrated and likely moves in the race. Vendors must also have a deep
understanding of AI adoption behaviors and how they’re positioned in the race
against competitors to meet or even drive demand.”
The AI race is
always changing. GenAI advantages
are eroding much faster than other innovation cycles, putting more pressure on
tech providers. For example, leaders face a rapidly maturing GenAI market,
where in less than 36 months, GenAI capability will become a baseline
requirement for offerings. In fact, every software market has already surpassed
first-mover advantage, and by 2026, more money will be spent on software with
GenAI than without.
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