Why is AI spending not increasing significantly despite discussions?

AI spending has not significantly increased because current investments are not yet supported by clear evidence of higher revenues, indicating a cautious approach by firms.

What are the main areas for current technology investments?

New technology investments are mainly flowing into cloud computing and data analytics, which are considered proven and regulator-friendly areas.

What are companies' expectations for AI's impact on expenses?

Most companies expect AI to integrate gradually without a major spending effect, with only a small percentage believing it will significantly reduce expenses in the next three to five years.

Home / Technology / AI Hype vs. Reality: Spending Lags Behind Talk

AI Hype vs. Reality: Spending Lags Behind Talk

25 Feb

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Summary

Firms invest less than 10% of operating expenses on technology.
Majority of IT budgets maintain legacy systems, limiting innovation.
Most expect gradual AI integration, not immediate cost reduction.

AI Hype vs. Reality: Spending Lags Behind Talk

Artificial Intelligence (AI) is a frequent topic of discussion, but this talk has not yet translated into substantial spending increases, as investments are not yet supported by evidence of significantly higher revenues. Companies appear to be adopting a cautious and realistic approach to AI adoption.

Survey results indicate that approximately 70% of firms allocate less than 10% of their operating expenses to technology. For a notable three-in-ten respondents, this figure ranges between 10% and 20%. In the EMEA region specifically, 67% of IT budgets are consumed by maintaining existing technology, leaving limited financial capacity for innovation projects.