Many IT leaders are feeling the squeeze when it comes to funding AI initiatives. A recent survey by Gartner looked at 253 IT leaders around the world and found that half of them are struggling to find enough money in their budgets to support new AI projects. Because of this, more than half (54%) are focusing only on AI efforts that can show quick results and clear cost savings.

Focusing on Quick Wins in AI

Many companies are choosing to start small with AI. Melanie Freeze, a research director at Gartner, explained that the most momentum is happening in areas like IT service management and digital workplaces. These are the places where automation and generative AI can make a real difference fast. For example, a healthcare company used AI to improve its IT service desk. They built a portal where employees could describe their issues, and an AI model would suggest solutions using the company’s existing data. This reduced the number of first-call resolution incidents and let service desk workers focus on more complex problems.

Challenges in Scaling AI Projects

Even though AI shows promise, putting it into full-scale operation isn’t easy. Integration can be complicated and costly. About 48% of the IT leaders said they face difficulties bringing all the AI pieces together. The key is to start small and aim for quick wins—this approach helps build momentum. Freeze recommends focusing on use cases that offer easy returns to demonstrate value early on. While short-term cost savings are attractive, the real goal is to develop AI capabilities that bring long-term benefits and innovation.

The Reality of AI Failures and Risks

AI projects are not always successful. Research from MIT shows that about 95% of AI initiatives fail. Gartner also predicts that over 40% of AI projects will be canceled by 2028. These numbers highlight how risky and uncertain AI can be if not managed carefully. Freeze says companies need to be strategic in choosing where to invest their resources. It’s about balancing the potential value against the costs and risks of integration.

Most companies are using AI to gain insights and improve customer experiences. Major players like Microsoft, Google, Slack, Box, and Zoom talk about how AI can unlock data that’s been dormant, helping businesses make smarter decisions for the future. Interestingly, the survey focused only on projects that directly boost worker productivity, not long-term investments in infrastructure. Despite the challenges, IT leaders remain cautious about spending too much on AI without clear, measurable results.

In the end, AI is a powerful tool, but it’s not a magic solution. Success depends on smart planning, starting small, and focusing on projects that can deliver quick wins to build confidence and momentum.

Inspired by

• https://www.computerworld.com/article/4082654/gartner-ai-budgets-are-going-to-projects-that-demonstrate-value-real-world-impact.html

Sources

• gmpg.org
• gartner.com
• mlq.ai
• gartner.com
• wsj.com