AI devours a fifth of companies’ IT budgets
According to a new study by the research firm Forrester, AI will account for 20% of corporate technology spending in 2027. At the same time, more than half of IT executives are expected to miss their return-on-investment targets, reports The Register . In the survey, 45% of AI decision-makers state that investments must yield a positive return within one year to be considered successful. At the…
A new study by research firm Forrester reveals that artificial intelligence (AI) is projected to consume a fifth of corporate technology budgets by 2027, according to The Register. However, the report also highlights that a majority of IT executives are likely to fall short of their return-on-investment (ROI) goals, with 45% of AI decision-makers asserting that positive returns must be realized within a year for an AI investment to be deemed successful.
Yet, only 22% of these decision-makers have observed a positive impact on their company's operating profit in the past year.
Forrester attributes these challenges to companies investing in AI technology without simultaneously adapting their organizations and work processes. The financial benefits are observed primarily within individual AI use cases, rather than across the entire enterprise. To mitigate costs, organizations are anticipated to increasingly adopt open AI models, which are more cost-effective to operate. High-end, sophisticated AI models are expected to be confined to more crucial tasks due to their higher expense.
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