AI’s Financial Blind Spot: Why Long-Term Success Depends on Cost Transparency

Why It Matters

The solution, the piece says, is adopting Technology Business Management practices—IT financial management, FinOps and strategic portfolio management—to attribute spend to outcomes, curb waste, and prioritize high-value AI investments.

Summary

Businesses are racing to deploy AI but lack of cost transparency risks turning promising projects into expensive failures, argues Apptio. With 68% of tech leaders planning bigger AI budgets and 39% expecting AI to drive future budget growth—despite an average GenAI spend of $1.9 million in 2024 and fewer than 30% of CEOs satisfied with ROI—Gartner warns over 40% of agentic AI projects could be canceled by 2027 due to rising costs and unclear value. The solution, the piece says, is adopting Technology Business Management practices—IT financial management, FinOps and strategic portfolio management—to attribute spend to outcomes, curb waste, and prioritize high-value AI investments.