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All issuesVolume 339, Issue 4IT NewsCxO

What Enterprise CIOs Can Learn From the Public Sector on AI Spending

CIO Dive, Wednesday, June 24th, 2026

New York State CIO Dru Rai urges enterprises to adopt public-sector AI budget discipline and a fail-fast mindset.

New York State CIO Dru Rai advocates a try-and-fail-fast strategy to control AI budgets by abandoning underperforming pilots early.

Public sector cost constraints foster creative problem-solving, since less money forces smarter use of it.

Rai prefers sustainable, cheaper AI models over speed-to-market, saying he is happy to be second.

Safety and privacy must accompany productivity gains to protect citizen data.

Enterprise AI budgets face growing scrutiny as usage-based pricing makes budget discipline essential for ROI.

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