TLDR: A recent PYMNTS Intelligence survey reveals a significant shift in corporate AI spending, with only 26.7% of CFOs planning to increase GenAI budgets in the next 12 months, down from 53.3% a year ago. This recalibration is driven by a focus on demonstrable ROI, leading to a bifurcation in investment strategies. Companies with higher automation maturity and those in the tech sector are more likely to expand AI budgets, while others exercise greater caution, prioritizing solutions that address specific business problems like efficiency, tax compliance, and risk reduction.
Enterprise spending on Generative AI (GenAI) is undergoing a notable slowdown as finance leaders reassess their priorities amidst a dynamic macroeconomic landscape. According to a recent PYMNTS Intelligence survey of 60 enterprises, a mere 26.7% of Chief Financial Officers (CFOs) anticipate increasing their GenAI budgets in the coming 12 months. This represents a steep decline from 53.3% just a year ago, signaling a strategic pivot from experimental adoption to a more disciplined and ROI-driven deployment approach, even as interest rates show signs of easing and capital markets become more fluid.
The current investment climate is characterized by a strong emphasis on return on investment (ROI), which is now the primary driver behind every spending decision. This has created a clear divide among enterprises: those that are doubling down on their AI investments due to proven returns and those that are pulling back. For instance, among companies reporting very positive ROI from GenAI, 50.0% intend to increase their budgets. Conversely, only 16.7% of firms reporting negligible ROI expect to do so. This bifurcation underscores a shift from superficial productivity metrics to more tangible financial indicators such as cycle-time reduction, error minimization, and working capital impact.
Automation maturity also plays a crucial role in shaping CFOs’ confidence in expanding AI budgets. The PYMNTS Intelligence data indicates that in highly automated enterprises, 33.3% of CFOs are prepared to expand GenAI budgets. In contrast, only 21.4% of low-automation firms plan to do the same. This suggests that companies with robust automation foundations are better positioned to seamlessly integrate GenAI into their workflows, while less mature firms face higher transition costs. The industry breakdown further highlights these disparities: 41.7% of tech firms plan to increase GenAI budgets, compared with 27.3% of service firms and 19.2% of goods-sector firms, reflecting differences in ease of integration and margin sensitivity across sectors.
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Kevin Akeroyd, CEO of Sovos, commented on this evolving landscape, stating, ‘As CFOs plan for 2026, the real question is not whether to spend on GenAI, enterprise AI, or agentic AI but how these tools solve the problems that keep them up at night.’ He emphasized that finance leaders are evaluating how AI can enhance efficiency in critical areas such as tax compliance and reporting, while simultaneously mitigating risks associated with evolving regulations. Akeroyd concluded that ‘The best budgets balance ambition with caution, leaving room to test new technologies while doubling down on proven enterprise applications,’ encapsulating the balanced mindset CFOs are adopting towards AI investments today.
