Experts warn software budgets could be set to soar as AI bills are on the rise

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  • Forrester analysts warn around four in five leaders and ITDMs envision having larger budgets in 2027
  • Consumption-based AI pricing is making it harder to predict outlay
  • Targeted investment to improve data quality is key

Forrester is predicting software budgets could be set to rise, with more than four in five leaders expecting to increase overall budgets over the next 12 months and 82% of tech decision-makers expecting larger budgets.

While some of the extra cash could come as a result of increased confidence and readiness to spend on tech, the company's analysts warn that a shift in pricing structures could also be forcing companies to fork out more.

This comes as software vendors shift from traditional per-seat licences to token or credit pricing, which introduces so many more variables including model selection, context size, output length and agent operating time, leading to far more unpredictable outgoings.

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