Omdia: 2023 AI budgets skyrocket past $1 million

AI cannibalizes other priorities. AI budgets are likely cannibalizing budgets that were previously dedicated to other IT and operations initiatives.

AI lifecycle's accelerated learning curve will test leadership patience. There will be increased pressure for organizations to quickly become competent and show results.

Pressure on organizational culture. Increasing AI budgets typically mean leadership expects material results within a defined timeframe. AI initiatives blossom within organizations that have a good process for innovation; these organizations tend to transcend organizational silos to address "greater good" themes for initiatives. Organizations with parochial cultures will struggle to produce results.

Increased urgency for KPI measurement. With formalized AI budgets, organizations must develop and report on specific AI KPIs.

Accelerated development of an AI-ready organization. Substantial AI budgets will reflect the importance of tuning the overall organization. Investments will be made to build more formalized organizational structures for managing the people and processes that support operationalized AI.