What is the current state of AI spending among companies?
According to recent surveys, AI is a top spending priority for many companies. A CNBC survey of top tech executives revealed that nearly half (47%) consider AI their top technology spending area for the next 12 months. Furthermore, 63% of these executives reported that their companies are accelerating their AI spending. This indicates a strong commitment to AI initiatives across various industries. A separate survey by Omdia supports this trend, showing that 55% of companies already have a dedicated AI budget, signifying that AI is moving beyond experimental phases into live, operationalized projects.

How are AI budgets allocated within companies?
The Omdia survey provides insights into how companies allocate their AI budgets. It was found that 44% of respondents allocate 70% of their AI budget to software, services, and SaaS (Software as a Service). Meanwhile, 20% of respondents said that 70% of their AI budget is directed towards personnel and resources. The remaining 36% indicated that their budget is roughly evenly split between these two categories. This suggests that while software and services are a significant part of AI spending, investing in the right talent and resources remains crucial for successful AI implementation.

Which industries and regions are leading in AI spending?
Geographically, companies in parts of Asia are investing more in AI compared to the West. Specifically, 52% of respondents in Oceania, Eastern, and Southeast Asia spend $1 million or more annually on AI, compared to 47% in Western Europe and 38% in North America. By industry, financial services (62%), manufacturing (51%), and telecommunications (49%) are the top spenders in AI. These are followed by healthcare and pharma (35%), retail and CPG (33%), and energy, utilities, oil, and gas (27%). This indicates that AI adoption and investment are not uniform across all regions and industries, with some sectors and areas taking a lead in leveraging AI technologies.