Companies are finally paying for AI, and paying big

"CIOs are not only moving rapidly into production with AI systems, but they are also setting aside dedicated budgets to fund that adoption. A striking 90% of technology leaders said their organizations are creating new budgets specifically for generative AI and LLM projects, up from 85% the year before. That suggests AI is becoming additive rather than substitutive in enterprise tech spending."

"Even more telling: 60% of respondents said they are already in production with AI initiatives, a jump from 39% the previous year. Another 32% expect to be in production within six months. This shift comes after months of skepticism from investors who questioned whether businesses would convert pilot projects into real spending. The survey data suggests that moment is now arriving."

An RBC survey of 117 IT professionals across companies with revenues from under $250 million to over $25 billion found 90% of organizations plan to increase AI spending in 2026. Ninety percent of technology leaders reported creating new budgets specifically for generative AI and LLM projects, up from 85% the prior year. Sixty percent said they are already in production with AI initiatives, up from 39%, while another 32% expect production within six months. CIOs identified generative AI as the top category for increased software spending, surpassing cybersecurity and IT service management. AI adoption is shifting use cases toward revenue generation and driving IT budget growth.

Read at Business Insider