Edge data is rapidly growing, accelerating the already hot trend of edge AI and physical AI. Demand for processing power at the edge will grow rapidly, promoting more power-efficient designs. I&O leaders must become proactive on IT/OT alignment now, to avoid technical debt later.

As physical AI and edge compute converge, organizations face significant organizational and infrastructure decisions. Gartner has five related predictions that map the path ahead, from data growth and AI at the edge to IT/OT integration and the evolving role of I&O teams.

Gartner forecasts that:

• By 2028, more than two-thirds of enterprise-managed data will be created and processed outside the data center or cloud.
• Over two-thirds of all enterprises globally will deploy edge AI by 2029, up from 10% in 2025.
• By 2029, per-node compute capacity in embedded edge devices will increase by 5x vs. 2026, while power envelopes will remain flat.
• By 2029, two-thirds of enterprises will create a fusion team, combining IT infrastructure and operations (I&O) and operational technology (OT) staff.
• By 2030, infrastructure and operations (I&O) will have shared responsibility for 80% of edge computing deployments, compared with 10% in 2025.