AI is projected to constitute approximately 20% of business technology spending by 2027, according to Forrester. This significant increase is primarily driven by infrastructure and computing capacity, including servers, chips, and cloud services. Enterprises are facing challenges in managing these rising costs, with AI's consumption-based pricing models making budgeting more complex. To offset these expenses, companies are negotiating lower IT service contract prices and bringing some functions in-house, while also needing to maintain crucial investments in security and modernizing platforms like Salesforce. AI
IMPACT AI's increasing share of IT budgets will force enterprises to re-evaluate spending priorities, focusing on ROI beyond short-term productivity gains.
RANK_REASON Analysis of AI spending trends and their impact on enterprise IT budgets by an analyst firm.
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