Global enterprise AI budget in 2023: or soar to more than $1 million

AI has quickly become a significant investment for most businesses. In a new report, Omdia found that there was a significant budget for AI in 2023, and that the AI budget will increase in 2024.

"42% of the businesses we surveyed had an AI budget of $1 million or more in 2023, 23% had a budget of $2 million or more, and 9% had a budget of $5 million or more," said Mark Beccue, principal analyst at Omdia. There is a logical difference – smaller revenue businesses spend less than higher revenue companies, while verticals with more mature AI use cases spend more than other businesses. ”

As interest in generative AI surges, Omdia surveyed 369 businesses in February 2023. The budget for 2023 is likely to be determined before the generative AI movement.

Growing AI spending is significant:

AI cannibalizes other priorities. AI budgets can eat into budgets previously dedicated to other IT and operational initiatives.

The accelerated learning curve of the AI lifecycle will test leadership's patience. Organizations will be under increasing pressure to quickly become empowered and demonstrate results.

Then there is the pressure of organizational culture. Increasing AI budgets often means that leadership expects substantial results within a set timeframe. AI initiatives are blossoming in organizations with good innovation processes; These organizations tend to go beyond organizational silos to address better initiative themes. Organizations with a narrow culture will struggle to achieve results.

The urgency of KPI measurement will increase. With a formal AI budget, organizations must develop and report on specific AI KPIs.

AI-ready organizations will accelerate their growth. A large AI budget will reflect the importance of aligning your entire organization. Investments will be made in more formal organizational structures to manage the people and processes that support actionable AI.

It is clear that AI will reshape the number of organizational operations, and the allocation of funds for AI adoption will be one of the decisive factors for organizational success.