AI Investment Continues to Grow
Thirty months into the generative AI revolution, enterprises remain committed to investing in AI technology. According to a recent survey by Enterprise Technology Research (ETR), 83% of IT decision-makers plan to increase their AI spending in 2025, with most projecting double-digit growth.
Budget Shift to In-House AI Development
The ETR survey reveals a decisive shift towards building in-house AI applications, with 83% of respondents expecting to raise their AI spend in 2025. This trend is driven by the need for customization and control over AI development.
Regulatory Uncertainty Doesn’t Deter AI Adoption
Despite regulatory uncertainty and geopolitical tensions, enterprises remain committed to AI adoption. Half of the surveyed leaders reported that they are either holding steady or accelerating their AI programs.
ROI Remains Elusive
However, the survey also highlights that 27% of respondents have yet to see any tangible return on their AI investments. Fewer than 10% report an ROI north of 25%, a hurdle rate used by many CFOs to green-light high-risk IT projects.
IT Budget Growth Slows Down
The ETR survey also reveals a significant slowdown in IT budget growth, with a 190-basis-point drop from 5.3% in January to 3.4% in April.
Conclusion
In conclusion, while AI investment continues to grow, IT spending faces uncertainty due to economic and geopolitical factors. Enterprises are cautious about their AI spending, but remain committed to AI adoption.
