Most firms expect AI gains, but only 3% have achieved them
Three-quarters of corporate board members expect AI to improve productivity and reduce costs, but only 3 per cent of organisations have achieved those aims, according to Gartner. The gap suggests many companies are struggling to turn AI investment into measurable returns, while leaders may not agree with their organisations on where the technology can create value.
Gartner said 38 per cent of companies are already over budget on AI, and 85 per cent plan to spend more in 2027. AI frees up employees’ time in about one in five cases, but companies need to redirect that capacity towards valuable work, supported by training and changes to how jobs are organised. Other research cited in the article also points to missed return targets and continued investment despite limited immediate results.
In short
- Only 3 per cent of organisations have met AI productivity and cost targets.
- Most plan to increase AI spending despite budget overruns.
- Training and work redesign may be needed to realise returns.
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The case for
The expected productivity and cost gains may take time to emerge: AI projects often require new workflows, staff training and changes to how work is organised before benefits can be measured. Continued investment could be justified if firms see longer-term potential, and redirecting time saved towards valuable tasks may eventually produce returns that early figures miss.
The case against
The gap between widespread expectations and the small share of firms reporting gains suggests that enthusiasm is outpacing demonstrated value. With many already over budget, further spending risks tying up resources in projects that do not meet return targets, especially if leaders have not identified clear uses or prepared staff and workflows to capture the benefits.
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Originally published by The Register as “A whopping 3% of boardroom execs spy productivity and costs savings from AI”.