AI Growth Continues, but Some CIOs Are Cutting Back

AI remains the hottest topic in software, with 80% of CIOs planning to increase their AI budgets next year. But a small and growing share—around 8%—are starting to pull back, as early pilots haven’t paid off. AI is generating real value for some companies, but it requires a focused, intentional approach. So far, only about 15% are following the best practices that help companies realize this value—things such as setting a clear ambition, redesigning workflows, or focusing on data readiness over perfection. Thoughtful execution matters, and until more companies adopt approaches that deliver results, the number hitting “pause” on AI budget growth may continue to rise.