Cost of AI is forcing CIOs to rethink IT!

CIO.com reported that “CEOs, their boards, and the rest of the C-suite continue to push AI as a strategic imperative. As a result, IT’s investments in AI are up, with the percentage of the IT budget earmarked for AI projects nearly tripling from last year, according to the 2025 CIO Playbook from Lenovo and research firm IDC.”  The April 14, 2025 article entitled ” CIOs recalibrate IT agendas to make room for rising AI spend” (https://www.cio.com/article/3957762/cios-recalibrate-it-agendas-to-make-room-for-rising-ai-spend.html) included these comments from Marco Bill (senior vice president and CIO at Red Hat):

CIOs in general always have too many priorities, so there are always projects that are delayed,

And also these other comments:

Some of these recalibrations could come with significant consequences for CIOs and their organizations.

Consider, for example, how removing funds from innovations on tech other than AI could leave IT departments behind the curve when other emerging technologies move toward the mainstream.

What do you think?

First published at https://www.vogelitlaw.com/blog/cost-of-ai-is-forcing-cios-to-rethink-it