‘Organizations will not generate cost savings from AI at this point’: Just 3% of companies have recorded cost savings with AI – but that isn’t stopping them from investing more
More than one-third of AI projects have run over budget, but business leaders are still bullish on investment
Just 3% of organizations have been able to achieve “desired cost savings” through productivity gains, according to new research from Gartner.
A survey conducted by the analyst firm highlighted a growing disconnect between board members and the on-the-ground reality of AI.
Despite the small number of firms who’ve recorded gains, three-quarters of board members still expect AI to deliver value in terms of productivity and costs.
Moreover, Gartner’s survey found that 85% are planning to spend even more in the coming year as they ramp up adoption rates.
CV Viverito, senior director analyst in the Gartner HR practice, said the survey identifies that while AI shows promise for enterprises, many are still failing to unlock tangible value.
“Ultimately, organizations will not generate cost savings from AI at this point,” he said. “The greater opportunity is to use AI to do things that weren’t possible before, such as shifting employee time into new capabilities, outcomes, and sources of growth.”
Using AI to unlock time savings – and thereby costs – for employees isn’t proving easy, however. A similar study from Gartner found that just 21% of the time freed up by the technology was redirected into more “innovative work”.
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“There isn’t a struggle to create capacity; that’s happening already as organizations redesign work,” Viverito commented. “What organizations are struggling with is how to make that capacity usable and redirecting it to what is valuable.”
For organizations hoping to “make that capacity usable”, Gartner said those with several key traits and skillsets rank among those recording the most success.
These include those with high AI fluency, which helps them in “knowing when to trust technology, when to challenge it, and how to be accountable for the results”.
Leveraging “human connection” is another area in which workers are using AI to their advantage, the firm noted, particularly in areas such as stakeholders management, teamwork, and communication.
Mixed results with AI adoption
Gartner’s findings mark the latest in a string of studies highlighting lackluster returns from AI adoption in recent years. As ITPro reported in January this year, research from PwC showed widespread discontent among executives after heavy investment in the technology.
In the consultancy’s Global CEO Survey, just one-in-eight CEOs said that AI delivered both cost savings and revenue gains for their business. A third, meanwhile, reported gains in one or the other, but rarely both.
Crucially, more than half (56%) said they’d recorded no significant financial benefit at all. Optimism on this front was also lacking, the survey found. PwC noted that only 30% were confident about AI-related revenue growth across 2026.
A key factor behind growing discontent with AI lies in an inability to push projects from pilot to production, PwC noted. Enterprises have invested heavily in the early stages of the technology, but typically encounter difficulties when integrating the technology across the business.
Indeed, research from Accenture in April this year found that only one-in-ten UK firms had successfully deployed – or scaled – AI in core operations. The consultancy’s Generating Impact report also pointed to a “widening gap” between the basic use of the AI and its broader impact on organizational change.
Put simply, individual workers using the technology are seeing tangible benefits, such as increased productivity and time savings. Yet on a business-wide scale, these gains aren’t be translated into revenue.
Alignment is critical for success
Integration of AI across the business requires close collaboration and enterprise-wide alignment, Gartner noted. A July 2026 survey found that 78% of leaders have no clear alignment on “where AI creates value”.
Arj Bagga, VP analyst in Gartner’s HR practice, said this underlines the importance of a clear-cut strategy and expectations with the technology during the early adoption phase.
“Without a shared view of where AI matters the most for the organization, there is a disconnect in how to position the workforce, and ultimately, how to capture value from AI investments,” Bagga commented.
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Ross Kelly is ITPro's News & Analysis Editor, responsible for leading the brand's news output and in-depth reporting on the latest stories from across the business technology landscape. Ross was previously a Staff Writer, during which time he developed a keen interest in cyber security, business leadership, and emerging technologies.
He graduated from Edinburgh Napier University in 2016 with a BA (Hons) in Journalism, and joined ITPro in 2022 after four years working in technology conference research.
For news pitches, you can contact Ross at ross.kelly@futurenet.com, or on Twitter and LinkedIn.
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