AI devours a fifth of companies' IT budgets
What happened
A Forrester study says AI will make up 20% of corporate technology spending by 2027, but more than half of IT executives are expected to miss their ROI targets, with only 22% seeing a positive impact on operating profit. The research links the shortfall to investing in AI without changing organizational processes, and predicts companies will turn to cheaper open AI models for most tasks, reserving expensive models for critical work.
Why it matters
This suggests that without accompanying changes to work processes, AI investments may not deliver expected financial returns, prompting firms to seek cost‑effective open models to control spending.
Is this a big deal?
Get stories like this every morning
The day's AI news in plain English, in your inbox at 8:30 IST. Free.
More AI news
Every Way to Get 192GB for Local AI (Without a $9,500 Mac) [video]Industry news · 14 Nov 2026DeepSeek V4 Pro 0813DeepSeek · 14 Nov 2026DeepSeek V4 Pro 0813DeepSeek · 14 Nov 2026Show HN: Portal2Bench – Can AI agents solve Portal 2?Industry news · 14 Nov 2026Anthropic Upgrades Claude Code Projects to Run Parallel AI Workers Hands-FreeAnthropic · 14 Nov 2026This page was collected from computerworld.com and summarised automatically by AIPulsee's pipeline. See how it runs.