Enterprise IT Spending Is Broken: How To Unlock Real AI Value

Forbes - Mar 21st, 2025
Open on Forbes

Enterprises are encountering significant challenges in extracting value from their IT investments in AI, cloud, and modernization, as detailed by Jabin Geevarghese George, a Global Fintech Leader at TCS. Despite the anticipated $5.26 trillion in global IT spending in 2024, many digital transformation projects falter due to fragmented data systems and outdated processes. Initiatives like SAP's partnership with Databricks aim to address these issues by unifying data before AI adoption. However, most companies have yet to tackle these fragmentation problems, resulting in inefficient cloud usage and spiraling costs.

The story underscores the importance of rethinking cloud strategies and business models to embrace AI-native solutions. Enterprises must focus on data unification, real-time analytics, and AI governance to unlock AI's true potential. The current approach of isolated AI pilots and traditional SaaS solutions leads to disjointed operations and limited business impact. The SAP-Databricks collaboration highlights the necessity for structured data and AI-driven automation, urging organizations to adopt a holistic AI-first mindset to remain competitive and future-ready.

Story submitted by Fairstory

RATING

6.2
Moderately Fair
Read with skepticism

The article provides a timely and relevant discussion on the challenges and strategic shifts needed in enterprise IT spending and AI adoption. It effectively highlights key issues such as data fragmentation, cloud strategy, and AI optimization, supported by industry statistics and examples. However, the article's accuracy is somewhat affected by discrepancies in specific figures and the lack of detailed source attribution. The narrative is clear and accessible, but could benefit from a broader range of perspectives and more detailed explanations of technical concepts to enhance engagement and credibility. Overall, the article serves as a valuable resource for industry professionals and decision-makers, encouraging them to rethink their approaches to digital transformation and AI integration.

RATING DETAILS

7
Accuracy

The article presents several factual claims, such as global IT spending expected to reach $5.26 trillion in 2024, and 70% of digital transformation projects failing. While the claim about IT spending aligns with some industry forecasts, it conflicts with other reports projecting different figures for 2025. The statistic about digital transformation failures is consistent with commonly cited industry reports. Additionally, the article's assertion that over 90% of enterprises have adopted cloud solutions is supported by industry surveys, though the characterization of cloud use primarily as storage rather than AI-optimized computing may require further evidence. The claim that 85% of AI projects fail due to data issues is supported by Gartner's insights, highlighting the importance of data quality. Overall, while most claims are grounded in industry data, discrepancies in specific figures and the need for more detailed source attribution affect the story's precision.

6
Balance

The article primarily focuses on challenges and strategic shifts needed in enterprise IT spending and AI adoption, emphasizing the importance of data unification and AI optimization. However, it lacks a diverse range of perspectives, such as potential success stories or alternative strategies being implemented by enterprises. The narrative is heavily centered on the problems and proposed solutions without exploring counterarguments or different viewpoints. This results in a somewhat one-sided presentation that could benefit from including voices from various stakeholders in the industry, such as enterprise leaders who have successfully navigated these challenges or experts with differing opinions on the proposed strategies.

8
Clarity

The article is generally well-structured, with a clear focus on the challenges and strategic shifts needed in enterprise IT spending and AI adoption. It uses straightforward language and logical flow to present its arguments, making it accessible to readers with a basic understanding of the topic. Key points are articulated clearly, and the use of examples, such as the SAP-Databricks partnership, helps illustrate the narrative. However, the article could benefit from more detailed explanations of technical terms and concepts for readers less familiar with the subject matter. Overall, the clarity of the article supports comprehension and engagement.

5
Source quality

The article references industry reports and statistics from organizations like Gartner and BCG, which are credible sources in the field of IT and digital transformation. However, it lacks direct citations or links to these reports, making it difficult to verify the claims independently. The absence of a variety of sources or expert interviews further limits the depth of the analysis. Additionally, the article does not provide information about the potential biases or conflicts of interest of the author, who is identified as a member of the Forbes Technology Council, an invitation-only community. This could affect the perceived impartiality of the reporting.

5
Transparency

The article does not provide detailed explanations of the methodologies behind the statistics or claims presented. While it mentions reports from Gartner and BCG, it does not offer direct references or access to these sources, limiting transparency. The author's affiliation with the Forbes Technology Council is disclosed, but there is no discussion of potential conflicts of interest that might arise from this connection. The lack of detailed source attribution and explanation of the data collection methods or analytical frameworks used in the article reduces its transparency and makes it challenging for readers to assess the validity of the claims independently.

Sources

  1. https://nationalcioreview.com/articles-insights/technology/artificial-intelligence/2025-next-up-enterprise-ai-spending-to-grow-5-7-amid-modest-it-budget-growth/
  2. https://ir.isg-one.com/news-market-information/press-releases/news-details/2024/Enterprise-AI-Spending-to-Rise-5.7-Percent-in-2025-Despite-Overall-IT-Budget-Increase-of-Less-than-2-Percent-ISG-Study/default.aspx
  3. https://technologymagazine.com/articles/gartner-why-global-it-spending-will-hit-us-5-61tn-in-2025
  4. https://www.gartner.com/en/newsroom/press-releases/2025-01-21-gartner-forecasts-worldwide-it-spending-to-grow-9-point-8-percent-in-2025
  5. https://www.nextbigfuture.com/2025/01/overview-of-2025-ai-value-spending-and-infrastructure.html