Editorial illustration for Tech Leaders Boost AI Spending: 68% Plan Budget Increases, 39% See Growth Potential
AI Spending Surges: 68% of Tech Leaders Boost Budgets
68% of tech leaders plan AI budget hikes; 39% see AI as top growth driver
The AI investment surge is reshaping corporate technology strategies, but not all spending translates to success. As companies scramble to integrate artificial intelligence, a new study reveals the complex calculus behind tech leaders' budgetary decisions.
The race to harness AI's potential is driving unusual financial commitments across industries. Businesses aren't just dabbling, they're making serious strategic bets on emerging technologies that promise to revolutionize their operations.
But here's the catch: Money alone won't guarantee major results. While enthusiasm runs high, with nearly seven in ten tech leaders planning to increase AI budgets, the path from investment to idea remains uncertain.
Executives are navigating a high-stakes landscape where AI promises immense potential but demands sophisticated buildation. Some see AI as a critical growth engine, with more than a third believing it could be their department's most significant budget driver.
Yet questions linger: Will these investments deliver real value? Or represent another technology trend more notable for hype than substantive change?
According to Apptio research, 68% of technology leaders surveyed expect to increase their AI budgets, and 39% believe AI will be their departments’ biggest driver of future budget growth. But bigger budgets don’t guarantee better outcomes. Gartner® also reveals that “despite an average spend of $1.9 million on GenAI initiatives in 2024, fewer than 30% of AI leaders say their CEOs are satisfied with the return on investment.” If there’s no clear link between cost and outcome, organizations risk scaling investments without scaling the value they’re meant to create.
To move forward with well-founded confidence, business leaders in finance, IT, and tech must collaborate to gain visibility into AI’s financial blind spot. The hidden financial risks of AI The runaway costs of AI can give IT leaders flashbacks to the early days of public cloud. When it’s easy for DevOps teams and business units to procure their own resources on an OpEx basis, costs and inefficiencies can quickly spiral.
In fact, AI projects are avid consumers of cloud infrastructure — while incurring additional costs for data platforms and engineering resources.
AI investment is surging, but money alone won't solve everything. Tech leaders are betting big, with nearly 70% planning budget increases and over a third seeing AI as their primary growth engine.
Yet the excitement comes with a cautionary note. Gartner's data suggests simply throwing money at AI won't guarantee success. An average $1.9 million spend on generative AI initiatives hasn't translated to consistent CEO satisfaction.
This disconnect highlights a critical challenge. Organizations aren't just writing checks - they're searching for meaningful AI buildation that delivers real value. The enthusiasm is clear, but the path to tangible returns remains complex.
The research reveals a nuanced landscape. Budget increases signal confidence, but they're tempered by the reality that technological investment doesn't automatically produce breakthrough results. Companies will need strategic thinking, not just financial commitment.
For now, AI remains a promising but unpredictable frontier. Tech leaders are optimistic, but they're also learning that idea requires more than just capital. It demands smart, targeted approaches that align technology with genuine business needs.
Further Reading
- VCs predict enterprises will spend more on AI in 2026 - TechCrunch
- Survey: How Executives Are Thinking About AI in 2026 - Harvard Business Review
- Five Trends in AI and Data Science for 2026 - MIT Sloan Management Review
- CEOs to double down on AI spending in 2026 - AI Data Analytics
Related Reading
Policy & Regulation Tree search framework achieves 98.7% success on docs where vector search fails
Policy & Regulation Court rules AI model contains no copies, limits Getty watermark claim
Policy & Regulation California enacts first U.S. regulations for AI companion chatbots
From Archives New York Becomes First State to Ban AI-Enabled Rent Price Fixing
From Archives Japan warns OpenAI over Sora 2 video model amid AI-made anime copyright concerns
Common Questions Answered
What percentage of technology leaders are planning to increase their AI budgets in 2024?
According to the Apptio research, 68% of technology leaders surveyed expect to increase their AI budgets this year. This significant majority demonstrates the strong confidence and investment momentum in artificial intelligence across corporate technology strategies.
How much are companies typically spending on generative AI initiatives, and what challenges are they experiencing?
Gartner reports that companies are spending an average of $1.9 million on generative AI initiatives in 2024. Despite this substantial investment, fewer than 30% of AI leaders report that their CEOs are satisfied with the return on investment, highlighting a critical disconnect between spending and tangible outcomes.
What percentage of tech leaders see AI as a potential driver of future budget growth?
The Apptio research indicates that 39% of technology leaders believe AI will be their departments' biggest driver of future budget growth. This suggests a strong strategic belief in AI's transformative potential across various industries and technological domains.