Medium impact

AI devours a fifth of companies' IT budgets

Industry news•

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?

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