AI Cost Overruns Are Adding Up - With Major Implications For CIOs
CIO, Thursday, October 2nd, 2025
Most organizations miss AI cost forecasts, with nearly a quarter of IT leaders busting their budgets by more than 50%, putting stakeholder confidence and future spending at risk.
IT and finance leaders are struggling to estimate and contain the cost of AI deployments, with most AI projects exceeding spending targets, according to a new survey.
Despite mass AI adoption among enterprises, many IT leaders are finding it difficult to achieve ROI for AI projects, with inaccurate budgeting a significant part of the problem.
About 85% of organizations misestimate AI costs by more than 10%, and nearly a quarter are off by 50% or more, according to a recent survey from SaaS benchmarking firm Benchmarkit and cost governance platform Mavvrik. The cost estimates are nearly always too low.