Is the AI Spending Spree Forcing Companies to ‘Triage’ Their IT Budgets?
Businesses know that they have to invest big in artificial intelligence. But are other key IT expenditures going begging as a...
If they’re going to compete in today’s tech-dominated world, businesses know that they have to invest big in artificial intelligence. But are other key IT expenditures going begging as a result?
There’s no question that AI is taking up a commanding share of current technology spend, affecting virtually every function of the organization. Yet a growing number of tech leaders are finding themselves having to “triage” IT budgets for the coming year because of it, says Jason Rosenfeld, chief growth and alliance officer with NewRocket, a specialist in AI implementation utilizing the ServiceNow platform and Claude, Anthropic’s agentic AI assistant.
The spending priority for many companies now, Rosenfeld says, are AI-driven cybersecurity systems, as well as the deployment of tokens, the data units that allow AI models to read, process and write natural language. Meanwhile, they’re deferring or reducing investment in other technology initiatives.
“We’re seeing companies continuing to shift dollars from investments in what were enterprise platforms to AI,” he says, citing software-as-a-service (SaaS) as one category of applications that’s especially feeling the drain.
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