Want a return on your AI investment? Open source could be the key to success

Almost half of companies have seen a return on investment (ROI) on their AI strategy, according to new research, and those using open source tools are more likely to see a positive result.

In a recent survey from IBM and Morning Consult, the vast majority (89%) said their organization plans to increase or maintain their AI investments in 2025, a vote of confidence in the technology despite growing complaints about the costs and utility of AI.

Indeed, the report found that only 5% of respondents intended to reduce spending on AI, and none planned to make cuts of more than 50%.

Instead, some companies plan to refocus their AI efforts, choosing to focus on IT operations, data quality management, and then product or services innovation, the report found.

Half of respondents said their strategic changes included shifting to managed cloud, hiring AI-skilled specialist talent, and ramping up the use of open source tools.

"Companies now recognize the value of defining specific use cases and optimizing AI projects," said Maribel Lopez of Lopez Research, which developed the study.

"They are leveraging hybrid cloud strategies and open source to drive AI innovation and deliver financial returns.”

The appeal of open source AI is growing

The study found nearly half (47%) of respondents reported ROI on their AI investments to date, which was more likely for those using open source tools.

Of those surveyed, 51% of open source users reported positive ROI versus 41% using proprietary systems.

No wonder then that two-in-five respondents not yet embracing open source plan to turn to it for AI projects this year.

But even those already making use of open source ecosystems plan to expand their use of AI, with 38% saying they plan to launch 21 or more pilots this year versus 26% for companies using proprietary AI tooling, the report said.

Open source is already heavily used by organizations when it comes to AI, the research suggests. Six-in-ten respondents said they turn to open source ecosystems as an AI tool source, for example.

The study also predicted a slight rise in the use of open source AI solutions in the coming year.

More than 80% of those surveyed said at least a quarter of AI solutions or platforms are based on open source systems, and that's particularly true for the largest companies, with half of their AI solutions likely to be open source.

Not all about ROI

The report suggests that ROI isn't the only metric for progress with regard to AI adoption and deployment.

Companies are also considering how AI speeds up software development and innovation, with those metrics ranked as most important by 25% and 23% of respondents, followed by productivity at 22%. Direct financial benefits were ranked fourth, at 15%.

"As organizations begin to implement AI at scale, many are placing greater stock in success metrics such as productivity gains, in part because traditional hard dollar ROI benefits have yet to show up on the balance sheets,” said Lopez.

"Yet, companies continue to rapidly advance their AI strategies, with no sign of slowing down."

That said, while a third of companies said their AI investments are driven by innovation, 28% said AI investment targeted boosted revenue — and 41% said they desired both.