Investment is not the problem. Fifty-eight percent of respondents plan to invest $1 million or more in AI during the current fiscal year. Furthermore, 84% expect to increase AI spending in the coming fiscal year, while 39% expect an increase of up to 10%, and another 36% expect increases between 11% and 25%.
Where that money will come from is more revealing than how much there is. Among the middle market firms expecting increases, the top three budget areas they said are likely to be reduced as a result of AI investments are:
43%
Business intelligence or analytics initiatives
41%
Cybersecurity investments
40%
External consulting and advisory services
Those trade-offs expose a critical misalignment. Reducing cybersecurity and advisory spend is coming at a moment when AI governance and risk management are becoming more complex, not less. Organizations cite governance, security and integration as their top barriers—while simultaneously reducing the very investments required to address them.
Spending more does not automatically solve the organizational challenges identified in this report. Investing in AI is not the same as getting results from AI.
"Buying an AI solution is not a strategy or a road map," says Ana Minter, RSM US consulting AI go-to-market leader. "Leaders need to ask tough questions. Are you thoughtfully deploying it? Are you training your people? Are you focused on customer experience? How are you measuring it? There's so much that goes into a true strategy and blueprint for success."
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