"According to analysts at Forrester Research, genAI budgets have increased substantially year over year, yet a majority of organizations still struggle to demonstrate sustained return on investment. Early pilots often look promising, but value becomes harder to explain as systems scale, costs fluctuate, and governance expectations rise."
"The problem is not that AI fails technically. It's that enterprises are applying legacy budgeting, operating, and accountability models to a technology whose economics behave very differently. As a result, ROI erodes not because AI stops working, but because organizations lose the ability to explain, defend, and prioritize it."
"High-performing IT organizations no longer treat finance as a gatekeeper focused on cost containment. Instead, IT finance becomes a capability for strategic value delivery - connecting technology investment directly to business growth and competitive advantage."
Enterprise spending on generative AI has increased significantly, yet many CIOs struggle to show sustained ROI. Early pilots may seem promising, but as systems scale and costs fluctuate, explaining value becomes challenging. The issue lies in applying outdated budgeting and accountability models to a technology with different economic behaviors. Analysts suggest a shift in perspective, where IT finance is viewed as a strategic capability that connects technology investments to business growth, rather than merely a cost control function.
Read at Computerworld
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