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Enterprise AI Spending to Rise 5.7 Percent in 2025, Despite Overall IT Budget Increase of Less than 2 Percent: ISG Study

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Information Services Group (ISG) released a new study revealing enterprise leaders plan to increase AI spending by 5.7% in 2025, despite overall IT budgets growing only 1.8%. The average IT budget increase is projected at $11.5 million, with AI accounting for $3.4 million (30%) of that increase.

Nearly 25% of respondents plan to increase AI spending by 10% or more. The study also shows increased spending on IT security, applications, and customer experience initiatives. Almost half of IT spending is allocated to staffing, with expected increases of 1.1% for internal staff and under 1% for outsourced staff in 2025.

Most enterprises plan to maintain their current number of providers, with over one-third expecting to expand engagement with their largest provider, and about half planning to engage new providers for niche projects.

Information Services Group (ISG) ha pubblicato un nuovo studio che rivela come i leader aziendali intendano aumentare la spesa per l'IA del 5,7% nel 2025, nonostante i budget IT complessivi crescano solo dell'1,8%. L'aumento medio del budget IT è previsto in $11,5 milioni, con l'IA che rappresenta $3,4 milioni (30%) di tale aumento.

Quasi il 25% degli intervistati prevede di aumentare la spesa per l'IA del 10% o più. Lo studio mostra anche un aumento della spesa per la sicurezza IT, le applicazioni e le iniziative per migliorare l'esperienza del cliente. Quasi la metà della spesa IT è destinata al personale, con aumenti attesi dell'1,1% per il personale interno e di meno dell'1% per il personale esternalizzato nel 2025.

La maggior parte delle aziende prevede di mantenere il numero attuale di fornitori, con oltre un terzo che si aspetta di espandere il rapporto con il proprio fornitore principale e circa la metà che intende ingaggiare nuovi fornitori per progetti di nicchia.

Information Services Group (ISG) publicó un nuevo estudio que revela que los líderes empresariales planean aumentar el gasto en IA en un 5,7% en 2025, a pesar de que los presupuestos generales de TI solo crezcan un 1,8%. Se proyecta que el aumento promedio del presupuesto de TI sea de $11,5 millones, con la IA representando $3,4 millones (30%) de ese aumento.

Casi el 25% de los encuestados planea aumentar el gasto en IA en un 10% o más. El estudio también muestra un aumento en el gasto en seguridad de TI, aplicaciones e iniciativas de experiencia del cliente. Casi la mitad del gasto en TI se destina a personal, con aumentos esperados del 1,1% para el personal interno y de menos del 1% para el personal externalizado en 2025.

La mayoría de las empresas planea mantener su número actual de proveedores, con más de un tercio esperando ampliar la relación con su proveedor más grande y aproximadamente la mitad planeando contratar nuevos proveedores para proyectos específicos.

정보 서비스 그룹 (ISG)이 발표한 새로운 연구에 따르면, 기업 리더들은 2025년에 AI 지출을 5.7% 증가시킬 계획이라고 합니다. 전체 IT 예산은 단 1.8% 성장하는 것에 반해 이러한 계획이 세워졌습니다. 평균 IT 예산 증가는 $11.5백만으로 예상되며, AI는 해당 증가의 $3.4백만 (30%)을 차지합니다.

응답자의 거의 25%가 AI 지출을 10% 이상 증가시킬 계획입니다. 이 연구는 또한 IT 보안, 애플리케이션 및 고객 경험 이니셔티브에 대한 지출이 증가하고 있음을 보여줍니다. IT 지출의 거의 절반이 인력에 할당되며, 2025년에는 내부 직원에 대해 1.1%, 외부 위탁 직원에 대해 1% 미만의 증가가 예상됩니다.

대부분의 기업은 현재의 공급업체 수를 유지할 계획이며, 3분의 1 이상이 가장 큰 공급업체와의 관계를 확장할 것으로 예상하고, 약 절반은 틈새 프로젝트를 위해 새로운 공급업체와의 계약을 계획하고 있습니다.

Information Services Group (ISG) a publié une nouvelle étude révélant que les dirigeants d'entreprises prévoient d'augmenter les dépenses en IA de 5,7% en 2025, alors que les budgets informatiques globaux ne croissent que de 1,8%. L'augmentation moyenne du budget informatique est estimée à 11,5 millions de dollars, dont l'IA représente 3,4 millions de dollars (30%) de cette augmentation.

Près de 25% des répondants prévoient d'augmenter les dépenses en IA de 10% ou plus. L'étude indique également une augmentation des dépenses pour la sécurité informatique, les applications et les initiatives d'expérience client. Près de la moitié des dépenses informatiques sont allouées au personnel, avec des augmentations attendues de 1,1% pour le personnel interne et de moins de 1% pour le personnel externe en 2025.

La plupart des entreprises prévoient de maintenir leur nombre actuel de fournisseurs, avec plus d'un tiers s'attendant à élargir leur collaboration avec leur fournisseur principal, et environ la moitié prévoyant de faire appel à de nouveaux fournisseurs pour des projets spécifiques.

Information Services Group (ISG) hat eine neue Studie veröffentlicht, die zeigt, dass Unternehmensleiter planen, die Ausgaben für KI um 5,7% im Jahr 2025 zu erhöhen, obwohl die gesamten IT-Budgets nur um 1,8% wachsen. Der durchschnittliche Anstieg des IT-Budgets wird auf 11,5 Millionen Dollar geschätzt, wobei KI 3,4 Millionen Dollar (30%) dieses Anstiegs ausmacht.

Fast 25% der Befragten planen, die Ausgaben für KI um 10% oder mehr zu erhöhen. Die Studie zeigt auch eine erhöhte Ausgaben für IT-Sicherheit, Anwendungen und Initiativen zur Verbesserung des Kundenerlebnisses. Fast die Hälfte der IT-Ausgaben entfallen auf Personal, mit erwarteten Erhöhungen von 1,1% für internes Personal und weniger als 1% für externes Personal im Jahr 2025.

Die meisten Unternehmen planen, ihre aktuelle Anzahl an Anbietern beizubehalten, wobei über ein Drittel erwartet, die Zusammenarbeit mit ihrem größten Anbieter auszubauen, und etwa die Hälfte plant, neue Anbieter für Nischenprojekte zu engagieren.

Positive
  • AI spending increase of 5.7% in 2025, with 25% of companies planning 10%+ increases
  • Significant AI investment of $3.4M average, representing 30% of total IT budget increase
  • Increased spending on IT security, applications, and customer experience initiatives
Negative
  • overall IT budget growth of just 1.8% for 2025
  • Minimal staff spending increase (1.1% internal, <1% outsourced)

Insights

The projected 5.7% increase in enterprise AI spending for 2025, significantly outpacing the modest 1.8% overall IT budget growth, signals a strategic pivot in corporate technology investments. The $3.4 million average AI spending increase, representing 30% of total budget growth, reflects strong enterprise commitment to AI adoption. The focus on reinvesting cost savings into AI transformation, coupled with the fact that nearly a quarter of companies plan 10%+ AI budget increases, indicates a mature approach to funding innovation. However, the conservative 1.1% increase in staffing costs suggests companies are prioritizing technology over human capital, which could impact implementation success. This measured approach to IT spending, emphasizing strategic capabilities while maintaining cost discipline, appears designed to maximize ROI in an uncertain economic environment.

The shift toward strategic provider consolidation while maintaining openness to niche AI capabilities represents a sophisticated enterprise approach to technology vendor management. The study reveals a clear prioritization of AI, security and cloud services (SaaS, PaaS, IaaS) over general IT spending, indicating a maturation in digital transformation strategies. The trend of enterprises expanding relationships with primary vendors while seeking specialized AI expertise suggests a two-tier sourcing strategy emerging for 2025. This approach balances the efficiency benefits of vendor consolidation with the need to access cutting-edge AI capabilities. The focus on customer experience initiatives alongside AI investments points to a practical application-focused approach rather than just technological experimentation.

Leaders plan to reinvest savings from cost optimization and productivity gains in transformation and customer experience enabled by AI

STAMFORD, Conn.--(BUSINESS WIRE)-- New survey research from leading global technology research and advisory firm Information Services Group (ISG) (Nasdaq: III) finds enterprise leaders plan to increase spending on AI by an average of 5.7 percent in 2025, despite much more modest increases in overall IT budgets, and reinvest savings from cost optimization and productivity into AI-enabled transformation.

“Overall IT budgets are expected to rise 1.8 percent in 2025 – in line with inflation – but AI, security, applications and customer experience initiatives are seeing higher increases directed at strategic long-term investments,” said Alex Bakker, ISG distinguished analyst and co-author of the study. “Our study found the biggest spending increases will go to AI, where enterprises are looking to establish a foothold and drive growth.”

The newly released ISG Market Lens™ 2025 IT Budgets and Spending Study found global IT spending on AI will rise an average of 5.7 percent 2025, with nearly a quarter of respondents planning to increase spending on AI initiatives by 10 percent or more. With an overall average IT budget increase of approximately $11.5 million for 2025, AI is expected to account for an average spending increase of $3.4 million, or 30 percent of the overall budget increase.

Spending on IT security solutions and services, IT applications (including software-as-a service), platform-as-a-service, infrastructure-as-a-service and customer experience initiatives will also outpace the average budget increase.

“Enterprises are continuing to focus on cost optimization and efficiency programs to fund transformation and customer experience enabled by AI,” said Michael Dornan, principal analyst and co-author of the study. “This will impact how organizations manage their provider ecosystem and how they source the skills they need for these new investments.”

Almost half of IT spending goes to internal staff, external augmented staff or fully outsourced staffing, which drives the focus on productivity improvements. Overall spending on staff is expected to increase marginally by 1.1 percent for internal staff and less than 1 percent for outsourced or augmented staff in 2025.

The study indicates the overall number of providers engaged will stay the same for most enterprises, with more provider consolidation than expansion. More than one-third of organizations expect to expand engagement with their largest provider, and around half of respondents expect to engage with new providers for niche projects or related skills and capabilities.

“In 2025, service providers have a unique opportunity to act as strategic partners for transformation and as sources of innovation around critical niche capabilities such as AI,” Dornan said. “The number of providers in a typical enterprise ecosystem that are neither strategic nor niche will likely shrink next year, reinforcing the importance for providers to have a deep understanding of their clients’ business challenges and a capabilities roadmap that aligns with industry needs.”

The ISG study, conducted globally in October and November 2024, surveyed 300 executives in G2000 enterprises in the Americas, Europe and Australia/New Zealand with decision making responsibility for IT spending in their organization.

ISG Market Lens™ buyer behavior studies combine findings from surveys of senior-level global executives with expert ISG research and analysis on market trends and strategic business initiatives. Recent studies explored GenAI, mainframes, AI, cloud, application development and maintenance, BPO, cybersecurity, global capability centers and sustainability.

Contact ISG for more information on ISG Market Lens research.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

Press Contacts:



Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com



Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is the expected AI spending increase for enterprises in 2025 according to ISG (III)?

According to ISG's study, enterprise AI spending is expected to increase by 5.7% in 2025, with nearly 25% of companies planning increases of 10% or more.

How much will average IT budgets increase in 2025 according to ISG (III)?

ISG's study shows overall IT budgets are expected to increase by 1.8% in 2025, averaging approximately $11.5 million per enterprise.

What portion of IT budget increases will be allocated to AI in 2025 according to ISG (III)?

According to ISG, AI will account for $3.4 million, or 30% of the average overall IT budget increase in 2025.

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