AI devours a fifth of companies' IT budgets

According to a new study by the research firm Forrester, AI will account for 20% of corporate technology spending in 2027. At the same time, more than half of IT executives are expected to miss their return-on-investment targets, reports The Register.

In the survey, 45% of AI decision-makers state that investments must yield a positive return within one year to be considered successful. At the same time, only 22% have seen a positive impact on their company’s operating profit over the past year.

According to Forrester, the problems stem in part from companies investing in AI technology without simultaneously changing their organizations and work processes. Instead, the financial gains are realized within individual use cases.

To keep costs down, companies are expected to increasingly use open AI models in the future, as they are cheaper to operate. More expensive and advanced AI models are expected to be reserved for more critical tasks.

This article originally appeared on Computer Sweden.