AI spending rises as corporate returns remain limited

Corporate spending on artificial intelligence (AI) is increasing, yet many businesses struggle to show substantial financial gains from their investments, according to a recent Gartner survey. Of the 2,002 chief information officers and technology executives surveyed, only 13% reported significant or transformational value from AI. This suggests that the rapid adoption of AI, while growing, does not guarantee positive business outcomes.

Alicia Mullery, a Gartner analyst, warns that simply increasing the volume of AI use cases does not translate to value. She highlights two key weaknesses: inadequate assessments of potential benefits and a reluctance to discontinue unsuccessful projects. Organizations that implement controls to prevent unsuccessful pilots from entering production and to withdraw underperforming applications are twice as likely to perform better than those without such measures.

Financial pressures are exacerbating the challenge. While 58% of technology leaders are under pressure to reduce costs through AI, 51% expect the technology to raise their overall technology system costs due to computing requirements, model usage, and integration expenses. Even when AI is deemed useful, only 6% of high performers attribute significant value and at least a 5% earnings contribution to AI, according to a separate McKinsey survey.

However, 80% of respondents believe AI has improved their individual productivity, and 50% say it helps them make better decisions. Yet, these productivity gains may not lead to lower corporate expenditure or higher revenue if employees use AI to draft documents or analyze information without altering staffing, service delivery, or business processes. Additional costs associated with checking automated outputs, managing sensitive data, and integrating tools can further diminish any financial benefits.

Scaling AI across multiple business units or adopting an AI-first approach is another obstacle. Only 22% of surveyed organizations have successfully expanded AI operations, and despite this, 85% of functional leaders plan to increase AI spending in 2026. However, about 11% of organizations in the Gartner survey do not know how much they spent on AI in 2025, complicating the calculation of returns and comparisons between projects.

Financial discipline and measurable outcomes are crucial for demonstrating AI value. Among organizations with established returns, nearly 48% have a formal cross-functional or enterprise-wide AI management structure, compared to just 31% of those still experimenting. These structures coordinate governance, security, and operational accountability across departments, contributing to stronger business outcomes.