AI Is Eating Software Budgets, Says New Executive Survey

A new survey of 310 procurement, IT, and finance leaders in the U.S. shows that AI spending is reshaping how businesses allocate software budgets, with many firms increasing IT expenditures just to keep up.

According to the report, 86% of companies raised their IT budgets in the past year, and 85% plan further increases — with 63% now dedicating 7% or more of revenue to IT. Among those, around a quarter allocate 10% or more of their tech budgets specifically to AI projects.

However, the surge comes with pressure: rising software costs, vendor consolidation, and redundant AI tools are forcing buyers to demand clearer ROI and accountability. Meanwhile, vendors must pivot to offering outcomes, not just features, to stay competitive in this evolving landscape.