'Were seeing a clear divide': Many business leaders admit they only have a 'limited understanding' of AI budgets

Date:
Mon, 06 Jul 2026 09:31:06 +0000

Description:
Productivity and cost savings are actually dropping new data shows a massive gap in visibility leading to poor ROI.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Productivity and AI-induced
cost reductions are actually dropping Most businesses plan to continue spending on AI regardless Only 35% have full visibility into costs, reporting lower ROI Despite ongoing deployment, many organizations are apparently still struggling to achieve ROI from AI, with new KPMG data revealing growing accountability, governance and workforce pressures.

The report found productivity gains actually fell from 42% to 35%, with decision making speed also dropping from 41% to 36%. Even costs were challenged, with cost reductions slightly falling from 31% to 29%. But
planned AI spending data indicates a near-identical value compared with the quarter before, implying companies could be investing blindly without
detailed strategies spelling out where they would get the most returns.
Latest Videos From Watch full video here: AI ROI is still a challenge, years later Backing that optimism, four in five (79%) say AI would remain a top investment priority even if a recession occurred, with a similar number (78%) confident they can future-proof their AI strategies accordingly.

Costs are clearly being scrutinized, though, with 22% now factoring in lower-cost AI models (compared with 15% previously). Nearly half (49%) have even delayed, paused or shrunk their AI strategies over cost concerns. You
may like Experts warn UK firms want to keep spending on AI - even without clear ROI UK businesses spend 11.7 billion on 'AI slop' corrections every year, with 1 out of every 4 hours wasted Most businesses say they've been caught out by unexpected high AI bills

"AI is now as much a financial management priority as it is a technology
one," Global Head of Advisory Rob Fisher summarized.

Clearly, model capabilities are no longer driving AI investments as companies start to look more closely at how much they're paying for services and the promised returns. And with only one in three (35%) having full visibility
into AI operating costs currently, much work needs to be done here. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting
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The report even argues that those with full AI cost visibility are 5x more likely to report ROI. "Were seeing a clear divide between organizations with leadership accountability at the top and those without," Global Head of AI
and Digital Innovation Steve Chase commented. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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