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Regardless of the driver of transformation, your companys culture, leadership, and operating practices must continuously improve to meet the demands of a globally competitive, faster-paced, and technology-enabled world with increasing security and other operational risks.
Forrester Research this week unleashed a slate of predictions for 2025. 2025 will be about the pursuit of near-term, bottom-line gains while competing for declining consumer loyalty and digital-first business buyers,” Sharyn Leaver, Forrester chief research officer, wrote in a blog post Tuesday.
Generative AI has seen faster and more widespread adoption than any other technology today, with many companies already seeing ROI and scaling up use cases into wide adoption. That means companies can use it on tough code problems, or large-scale project planning where risks have to be compared against each other.
While the ROI of any given AI project remains uncertain , one thing is becoming clear: CIOs will be spending a whole lot more on the technology in the years ahead. Research firm IDC projects worldwide spending on technology to support AI strategies will reach $337 billion in 2025 — and more than double to $749 billion by 2028.
Despite these limitations and concerns among CIOs over AI costs, real progress has been made this year and we can expect to see this grow further in 2025. Assuming a technology can capture these risks will fail like many knowledge management solutions did in the 90s by trying to achieve the impossible.
In 2025, thats going to change. Its the year organizations will move their AI initiatives into production and aim to achieve a return on investment (ROI). Here are five keys to addressing these issues for AI success in 2025. What are the associated risks and costs, including operational, reputational, and competitive?
This year saw emerging risks posed by AI , disastrous outages like the CrowdStrike incident , and surmounting software supply chain frailties , as well as the risk of cyberattacks and quantum computing breaking todays most advanced encryption algorithms. To respond, CIOs are doubling down on organizational resilience.
The report underscores a growing commitment to AI-driven innovation, with 67% of business leaders predicting that gen AI will transform their organizations by 2025. Leaders are putting real dollars behind agents, but with mounting pressure to demonstrate ROI, getting the value story right is critical.
I dont think anyone has any excuses going into 2025 not knowing broadly what these tools can do for them, Mason adds. So the organization as a whole has to have a clear way of measuring ROI, creating KPIs and OKRs or whatever framework theyre using. What ROI will AI deliver?
Business risk (liabilities): “Our legacy systems increase our cybersecurity exposure by 40%.” Our research shows 52% of organizations are increasing AI investments through 2025 even though, along with enterprise applications, AI is the primary contributor to tech debt. Focus on delivering immediate change in a self-funding way.
But alongside its promise of significant rewards also comes significant costs and often unclear ROI. Ineffective cost management: Over 22% of IT executives highlight challenges in managing costs and developing clear ROI methodologies. See also: Gen AI in 2025: Playtime is over, time to get practical. million in 2025 to $7.45
This increases the risks that can arise during the implementation or management process. trillion by 2025 , these concerns are urgent and certainly not far-fetched fallacies. The risks of cloud computing have become a reality for every organization, be it small or large. In both cases, the return on investment (ROI) is healthy.
More than 90% of IT leaders, in fact, expected their 2025 budgets to increase when surveyed in 2024. AI pressures The rapid adoption of AI over the past two years has demonstrated a need for IT spending to be better connected to business results, Guarini says, as CIOs are under pressure to deliver ROI from AI projects.
More than nine in 10 IT decision-makers project their budgets will increase in 2025, according to the Forrester 2025 Budget Planning Guide for Technology Executives. That spectrum of budget adjustments is being met by a range of strategies by IT leaders seeking to make the most of their 2025 IT spend.
Agentic AI, the more focused alternative to general-purpose generative AI, is gaining momentum in the enterprise, with Forrester having named it a top emerging technology for 2025 in June. This can be great for technically-savvy customers but has the risk of not being sufficiently abstracted from AI costs to hold value over time, he says.
And we’re at risk of being burned out.” If there are tools that are vetted, safe, and don’t pose security risks, and I can play around with them at my discretion, and if it helps me do my job better — great,” Woolley says. But there’s only so many projects we can meaningfully contribute to, and conversations we can be part of.”
According to the IDC FutureScape: Worldwide Future of Industry Ecosystems 2023 Predictions (October 2022), by 2025 60% of global 2000 organizations will have formed cross-ecosystem environmental sustainability teams responsible for sharing data, applications, operations, and expertise in ways that facilitate sustainable ecosystem practices.
By 2025, IDC expects Global 2000 companies to devote more than 40% of their core IT budgets to AI-related activities , with worldwide AI spending predicted to exceed $500 billion by 2027. ROI quickly becomes DOA. In this new year, the speed and scale of AI implementation will make the progress made in 2023 look stagnant.
In addition, many companies are still looking for the ROI in their AI projects , and SMBs hoping to reduce costs and cut headcount may instead need to hire prompt engineers to get value out of their investments, he adds. It is too risky, and its ROI is unproven.” SMBs need to get over those concerns or risk being left behind, he says.
Gartner also recently predicted that 30% of current gen AI projects will be abandoned after proof-of-concept by 2025. Many of those gen AI projects will fail because of poor data quality, inadequate risk controls, unclear business value , or escalating costs , Gartner predicts.
Research from IDC predicts that we will move from the experimentation phase, the GenAI scramble that we saw in 2023 and 2024, and mature into the adoption phase in 2025/26 before moving into AI-fuelled businesses in 2027 and beyond. These ROI expectations exist despite many surveyed organisations not having a clear AI strategy.
According to Informaticas CDO Insights 2025 , 87% of data leaders expect increased investment in generative AI and data governance, yet only a fraction are leveraging these advancements for ESG efforts. Without robust data infrastructure, sustainability reporting can become fragmented, leading to inefficiencies and compliance risks.
Organizations today risk falling into a similar scenario known as Shadow AI , where teams turn to public clouds or API service providers in their rush to build or adopt AI solutions. Gartner predicts 75% of enterprise-generated data will be created and processed outside a traditional centralized data center or cloud by 2025 [3].
From the first quarter of 2025, SAP said, developers will be able to create their own autonomous AI agents to further extend Joule. At what scale do they provide a positive ROI?” AI will enter the mix in the first half of 2025, offering developers suggestions to help them optimize their integration scripts.
But unknown to many is Indias meteoric rise to become a global leader in AI adoption and it is one to watch: what happens in the Indian market in 2025 will set the scene for the rest to follow. The first is responsible AI development. The first is responsible AI development. Data privacy and security follow closely behind.
The cost of compliance These challenges are already leading to higher costs and greater operational risk for enterprises. Clearly, compliance poses a significant operational risk that can only be overcome by robust systems and processes. zettabytes in 2020 to 181 zettabytes in 2025. million, a ROI of 196%.
billion on big data by 2025. Marketers are using AI to refine their outreach strategies, assess the likelihood that their messages will be flagged as spam or phishing with risk scoring algorithms and ensure compliance with local regulations. You will have an easier time improving your ROI if you use it to your advantage.
Nonostante il ROI di qualsiasi progetto di AI rimanga ancora incerto [in inglese] , una cosa sta diventando chiara: i CIO spenderanno molto di più per questa tecnologia nei prossimi anni.
The shift to SASE is well underway, with Gartner predicting that by 2025, at least 60% of enterprises will have explicit strategies and timelines for SASE adoption Security built for the future. ? Unlike legacy security tools that only protect against specific risks, SASE takes a more strategic approach.
trillion by 2025. A growing number of advertising platforms such as Facebook are using AI and other big data technology to get more value for their marketers, which means that your ROI will be higher as a marketer of digital products. Reduce risk by choosing a platform that offers up-to-date security measures. Key Takeaways.
It’s aggressively deploying those to Azure data centers, which won’t require any changes by customers, and expects these investments to come closer to meeting demand by mid 2025. It’s also creating tools to help customers pick from a wide range of models, Wong adds.
Some data is more a risk than valuable. Risk Management (most likely within context of governance). See Roadmap for Data Literacy and Data-Driven Business Transformation: A Gartner Trend Insight Report and also The Future of Data and Analytics: Reengineering the Decision, 2025. Would really like to explore this one in debate.
The foundational tenet remains the same: Untrusted data is unusable data and the risks associated with making business-critical decisions are profound whether your organization plans to make them with AI or enterprise analytics. Absent governance and trust, the risks are higher as organizations adopt increasingly sophisticated analytics.
Welcome to 2025! 2025 is forecast to be as impactful as any of the last few years, with continuing advancements in financial and business reporting technology promising to help organizations enhance their operational efficiency and effectiveness. Weve survived a lot in the last 25 years.
They should learn to talk about projects in terms of three business parameters: reducing risk, reducing cost, and increasing revenue. In 2025, IT leaders should invest in AI, but also focus on the cases where they can demonstrate measurable value, and then improve on those cases incrementally. Where are we heading?
Early returns on 2025 hiring for IT leaders suggest a robust market. Were seeing record growth in our search firm almost immediately in 2025, says Kelly Doyle, managing director at Heller Search Associates, an executive recruiting firm in Westborough, Mass., CIOs need to be the business and technology translator.
As per Foundrys State of the CIO Study 2025, almost 79% of CIOs respondents say they have additional responsibility of driving AI / Gen AI projects at their organisation. Focus on high-impact AI use cases aligned with business goals, ensuring measurable ROI. Myth: AI Delivers Immediate ROI. Myth: AI Is Only for Tech Companies.
The Impact of Technology in 2025 and Beyond survey from professional organization IEEE found that 58% of enterprise tech leaders believe AI will be the most important area of technology in 2025, far ahead of any other tech. The business may be saying that theyre not getting the ROI they expected, or theyll say IT is too slow, she says.
Business consulting firm Deloitte predicts that in 2025, 25% of companies that use generative AI will launch agentic AI pilots or proofs of concept, growing to 50% in 2027.The Business alignment, value, and risk How can an enterprise know whether a business process is ripe for agentic AI? Feaver says.
While EA leaders have long been positioned as key enablers of digital transformation, the rapidly shifting business landscape of 2025 presents new pressures. According to Gartners 2025 Leadership Vision for Enterprise Architecture , several key missteps are preventing EA from delivering the business impact it should.
Supplier risks: Evaluating supplier performance and mitigating risks consume substantial resources. AI simplifies this process, identifying risks and ensuring compliance. See also: How to prioritize AI initiatives: A strategic framework for maximizing ROI.) See also: Where CIOs should place their 2025 AI bets.)
A question of ROI GM’s move is hardly isolated, and it might reveal apprehension about enterprise software investments and their perceived lack of concrete return on investment (ROI). This is especially the case with various Generative AI efforts.
Marsh McLennan CIO Paul Beswick says enterprise CIOs and perhaps more importantly, CEOs should not get distracted or alarmed by vendors competing announcements about milestones and instead focus on getting first-generation AI projects deployed , evaluate the results and ROI , and carefully plan next steps.
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