Artificial intelligence (AI) has emerged as a pivotal technology for business and IT leaders, significantly impacting their operational strategies and future IT spending plans. While AI has been on the periphery of major investments in previous years, recent advancements, especially in generative AI (GenAI), have propelled it to the forefront of technological priorities. With its transformative potential, AI is reshaping how organizations allocate their resources and prioritize technological innovations. As businesses increasingly recognize AI’s value, a noticeable shift in IT spending priorities is taking shape, influencing strategies across various sectors.
The Surge in AI’s Importance
Organizations across diverse sectors have been exploring AI’s potential for years. However, the technology rarely topped investment priorities, with businesses focusing more on cybersecurity, cloud computing, and data management. The landscape began to shift with the advent of sophisticated GenAI tools, prompting a reassessment of AI’s role in enterprise strategies. According to Informa TechTarget’s “2025 Technology Spending Intentions Survey,” which polled 1,351 IT and business decision-makers worldwide, AI, data science, and machine learning (ML) were ranked second among broad technology initiatives in terms of increased business importance, trailing only cybersecurity. This marked a significant leap from the previous year, where this category was tied for fifth.
The survey highlighted AI’s growing relevance, with respondents acknowledging its heightened importance over the past two years. This shift reflects the broader recognition of AI’s transformative potential in driving innovation, automating processes, and enhancing decision-making accuracy. Enterprises are increasingly integrating AI into their long-term strategies, viewing it as a critical component of their competitive advantage. The expanded emphasis on AI also suggests a deeper understanding of its capabilities beyond mere automation, encompassing advanced analytics, predictive modeling, and intelligent data processing.
Generative AI: Sparking the AI Revolution
The rise of AI’s priority coincides with the expanded deployment of GenAI technologies. In 2023, enterprises began transitioning from experimental use cases of GenAI to production systems by 2024. IT leaders adopted a more focused approach, rigorously evaluating potential AI applications to identify those promising substantial business value. This strategic pivot underscores the perceived business benefits of AI, such as improved decision-making, cost reduction, and increased productivity. The survey revealed that 44% of respondents planned substantial investments in AI, data science, and ML for 2025, a significant increase from 28% the previous year.
This upsurge reflects the broader recognition of AI’s potential to drive transformative changes in business operations. Generative AI, in particular, has demonstrated its ability to revolutionize various industries by automating complex tasks, generating creative content, and optimizing workflows. As organizations embrace GenAI, they are experiencing tangible benefits that extend beyond cost savings. Enhanced decision-making capabilities, accelerated innovation, and improved customer experiences are among the notable advantages driving the increased investment in this technology.
Cybersecurity: The Unwavering Priority
Despite AI’s rising prominence, cybersecurity retained its top ranking among technologies of increasing significance. The 2025 survey indicated that 59% of respondents prioritized cybersecurity investments, underscoring the persistent and growing threats in the digital landscape. This priority has consistently topped the list since 2023, highlighting the critical need for robust cybersecurity measures to protect organizational assets. As cyber threats continue to evolve, organizations must remain vigilant in safeguarding their data, systems, and networks.
The importance placed on cybersecurity highlights a balanced approach to IT priorities, ensuring that as organizations invest in innovation, they also safeguard their digital environments. The emphasis on cybersecurity is driven by the increasing frequency and sophistication of cyberattacks, which pose significant risks to business continuity and reputation. By prioritizing cybersecurity, enterprises aim to build a resilient digital infrastructure capable of withstanding emerging threats and ensuring the integrity of their operations.
Increased IT Spending and Optimism
The survey results suggest an optimistic outlook for IT spending in 2025. Among the 1,055 respondents aware of their organization’s overall IT spending plans, 59% expected budget increases, up from 47% in 2024. This positive sentiment indicates a recognition of the strategic importance of technological investments, including AI and cybersecurity, to drive business growth and resilience. It signals confidence in leveraging technology to stay competitive and adapt to changing market dynamics.
This anticipated increase in budgets showcases the commitment of organizations to invest in transformative technologies and fortify their IT infrastructure. As businesses allocate more resources to AI and cybersecurity, they are positioning themselves to capitalize on new opportunities and address emerging challenges. The alignment of IT spending with strategic goals reflects a forward-looking approach, where technology serves as a catalyst for innovation, efficiency, and sustainable growth.
GenAI’s Strategic Role in Businesses
A deeper analysis reveals a specific focus on GenAI. Survey respondents identified GenAI as the top data science and AI/ML technology slated for substantial investments in the coming year. With 53% of respondents citing GenAI, the investment priority underscores a shift in how businesses leverage these technologies. Large language models (LLMs), highlighted by 35%, also play a critical role. The increased focus on GenAI is driven by its ability to generate high-quality, contextually relevant content, automate creative processes, and enhance data-driven decision-making.
Businesses recognize that GenAI technologies can deliver significant productivity gains, cost savings, and improvements in decision-making processes. The adoption of GenAI is not limited to specific industries; it spans sectors such as retail, finance, healthcare, and manufacturing. By harnessing the power of GenAI, enterprises aim to streamline operations, enhance customer experiences, and gain competitive advantages. The strategic integration of GenAI into business processes signals a paradigm shift in how organizations approach innovation and digital transformation.
Case Studies of AI Impact
Several case studies illustrate AI’s tangible benefits for businesses. Kroger’s retail data science subsidiary, 84.51°, uses AI to enhance decision quality and improve operational efficiency. For instance, an AI-enabled app for dynamic batching has reduced shopping trips by 10%, cutting order lead times. By leveraging AI to optimize logistics and streamline operations, Kroger has achieved significant cost savings and operational improvements. The integration of AI into everyday processes demonstrates the practical applications and measurable impact of AI technologies.
Discover Financial Services employs GenAI to process customer call transcripts, enhancing the customer experience and ensuring regulatory compliance. This application mitigates risks associated with incorrect customer contact methods and provides agents with real-time insights to improve service delivery. The use of GenAI in customer interactions highlights its potential to enhance operational efficiency, reduce human errors, and ensure compliance with regulatory requirements. Discover’s successful deployment of GenAI showcases its ability to drive positive business outcomes in the financial services sector.
Liberty Mutual Insurance integrates AI and ML in risk prediction, seeing significant impact with the deployment of GenAI. With LibertyGPT, the technology is projected to deliver over $100 million in value through productivity gains and cost savings. Beyond financial benefits, improved data accuracy and employee experience underline the broader impact of AI integration. The next phase involves embedding GenAI into core systems and workflows, further enhancing decision-making and operational efficiency. Liberty Mutual’s strategic use of AI exemplifies how organizations can leverage advanced technologies to achieve substantial business value.
The Evolving Focus on Cybersecurity Investments
Cybersecurity remains a top priority in IT strategies, with 72% of respondents planning to increase spending in this area. Key investment areas include network security technologies such as firewalls and zero-trust network access (ZTNA), with 39% and 38% of respondents, respectively, highlighting these as significant priorities. Gartner’s cybersecurity spending forecast echoes these trends, predicting substantial growth in both ZTNA and firewalls. The focus on these technologies reflects a proactive approach to addressing evolving cyber threats and enhancing overall security posture.
GenAI’s role in cybersecurity is also gaining traction. The survey indicated an increase in planned investments in GenAI-powered security technologies across various domains, including threat detection, response, identity and access management, and vulnerability management. As vendors integrate GenAI into their offerings, organizations are expected to leverage these capabilities for enhanced cyber defense. The integration of GenAI in cybersecurity underscores its potential to augment traditional security measures, providing advanced threat detection and response capabilities.
Addressing IT Complexity
The rapid adoption of new technologies, coupled with an evolving cybersecurity landscape, contributes to increasing IT complexity. In the survey, 60% of respondents acknowledged that their IT environments had become more complex over the past two years. The need to incorporate emerging technologies and manage dynamic cybersecurity threats were identified as primary drivers of this complexity. As organizations embrace digital transformation, they encounter challenges in integrating multiple systems, managing data flows, and ensuring seamless interoperability.
TEKsystems’ “2025 State of Digital Transformation” report reinforced this view, highlighting that the intricacy of IT environments and siloed mindsets pose significant challenges to digital transformation. To navigate this complexity, organizations are increasingly pursuing smaller, shorter-duration projects that offer quicker returns on investment and can be scaled incrementally. This approach not only mitigates the risks of large-scale deployments but also aligns with the fast-paced evolution of technologies like AI. By adopting agile methodologies and prioritizing iterative improvements, businesses can effectively manage IT complexity while driving innovation.
The Path Forward: Embracing AI and Managing Complexity
Artificial intelligence (AI) has emerged as a critical technology for business and IT leaders, significantly influencing their operational strategies and future IT spending plans. In previous years, AI was often on the periphery of major investments, but recent advancements, particularly in generative AI (GenAI), have propelled it to the forefront of technological priorities.
These advancements in AI have unlocked new possibilities, enabling organizations to rethink how they allocate resources and prioritize innovations. The transformative power of AI is becoming more and more recognized by businesses, leading to a notable shift in how IT budgets are spent. As a result, AI is reshaping strategies across various sectors, driving a change in spending priorities that have far-reaching implications.
From improving customer experiences to automating routine tasks, AI is making a significant impact. Businesses are beginning to understand the competitive edge AI can offer, leading to increased investments in this technology. This shift is not just limited to large enterprises; even small and medium-sized businesses are catching on to the potential benefits of AI.
In essence, the advancements in AI are causing a re-evaluation of how organizations view technology investments. The focus is shifting towards leveraging AI to drive efficiency, innovation, and competitive advantage. As this trend continues, it’s evident that AI’s role in shaping the future of business and IT strategies will only grow in importance.
