Digital Research (DRI) created the Graphical Environment Manager as an add-on program for personal computers. GEM was developed to work with existing CP/M and MS-DOS operating systems on business computers such as IBM-compatibles. It was developed from DRI software, known as GSX, designed by a former PARC employee. The similarity to the Macintosh desktop led to a copyright lawsuit from Apple Computer, and a settlement which involved some changes to GEM. This was to be the first of a series of 'look and feel' lawsuits related to GUI design in the 1980s.

GEM received widespread use in the consumer market from 1985, when it was made the default user interface built in to the TOS operating system of the Atari ST line of personal computers. It was also bundled by other computer manufacturers and distributors, such as Amstrad. Later, it was distributed with the best-sold Digital Research version of DOS for IBM PC compatibles, the DR-DOS 6.0. The GEM desktop faded from the market with the withdrawal of the Atari ST line in 1992 and with the popularity of the Microsoft Windows 3.0 in the PC front by the same years.