Today's sharing is [CEO's Generative AI Action Guide: Technology Spending] Report Producer: IBM
Featured Reports** Public Title: A global repository of industry reports
Generative AI investing is not a "one-and-done" one-and-done. This revolutionary technology is expected to impact every business function as well as the entire IT landscape. As CEOs rethink how to transform business models, job roles, and workflows to realize the full potential of generative AI, CEOs must also carefully consider the broader IT cost implications, not all of which are obvious.
Executives need deeper insight into IT spend to better understand and align the flow of money across the organization. Needless to say, a holistic view of data can help re-evaluate workflows, processes, and protocols, and even system architecture. This means that the organization must implement a major transformation, but the question is: can the enterprise invest in the IT budget accordingly?It's practical to prioritize projects that provide a competitive advantage, rather than spreading generative AI spending across your entire IT portfolio.
Generative AI is revealing problems in traditional funding practices. As with any emerging technology, this is inherently a dynamic process. Project needs and ways of creating value are changing rapidly, creating a huge headache for the traditional budgeting process.
However, only 15% of IT executives surveyed expect to fund generative AI budget growth by increasing spending. In contrast, many executives expect to free up funds from other IT investments to allocate to generative AI projects. Thirty-three percent of executives surveyed said the funding would come at the expense of non-AI IT spending. A larger percentage (37%) of the executives surveyed expect to draw generative AI spending from the broader AI portfolio, reflecting the expectation of synergies between traditional AI and generative AI projects, or adjustments for the overall AI portfolio.
This method of reallocating budgets is reasonable, but is it realistic?As generative AI becomes ubiquitous across the industry, it will have a comprehensive cost impact. In particular, as the demand for generative AI solutions continues to grow, so will labor spending and cloud computing spending. All in all, the impact will be broad and far-reaching – for a leading business, an additional $5 million budget may not do much.
This article is for informational purposes only and does not represent any investment advice from us. To use the information, please refer to the original report. ）
Featured Reports** Public Title: A global repository of industry reports