💰AI to Account for 20% of Tech Spend in 2027
AI budgets soaring, but ROI lagging
TL;DR
AI will account for 20% of tech budgets in 2027, but only 22% of decision-makers report positive EBITDA impact. Half of CIOs are likely to miss ROI targets next year.
AI will make up 20% of tech budgets in 2027, according to Forrester. However, only 22% of AI decision-makers report a positive impact on EBITDA over the past year. Despite this, more than half of CIOs are expected to miss their AI-related ROI targets next year. The pressure is mounting on leaders to prove AI's value while managing costs and risks. Tech teams are turning to open-weight models to get more bang for their buck, with these models approaching similar performance to proprietary systems at a fraction of the cost.
Key Points
AI will account for 20% of tech budgets by 2027, according to Forrester's predictions.
Only 22% of AI decision-makers report a positive impact on EBITDA over the past year.
More than half of CIOs are expected to miss their AI-related ROI targets next year.
Open-weight models will represent half of AI tokens but only 5% of enterprise spend.
Open-weight models can approach similar performance to proprietary systems at a fraction of the cost.
Why It Matters
Tech teams are shifting towards open-weight GenAI models to maximize ROI, given that only 22% of AI decision-makers report a positive EBITDA impact. These models offer similar performance to proprietary systems at a fraction of the cost, making them a viable option for enterprise workloads like document processing and customer support. However, frontier models will still be reserved for deep knowledge and critical task automations where errors are expensive.
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