AI Spending Stalls as Companies Struggle to Turn Data Plans into Operating Routines, Info‑Tech Says

4 min read
AI Spending Stalls as Companies Struggle to Turn Data Plans into Operating Routines, Info‑Tech Says

This article was written by the Augury Times






Why uncertainty over data roles is cooling AI budgets

Companies that once raced to throw money at artificial intelligence are now pausing. A fresh guidance note from Info‑Tech Research Group argues the hang‑up is not a lack of clever models or raw compute; it is unclear data operating models and fuzzy decision roles inside organisations. The practical effect is real: projects that promised to be quick wins are taking longer, costs are rising, and some planned AI spends are being delayed or slimmed down.

This is less a technology failure than an organisational one. Info‑Tech’s message is simple and blunt — without clear systems that decide who owns data, who vets it, and who puts models into daily use, AI investments stall. That downward pressure on immediate spending matters for IT chiefs, business leaders, and vendors hoping for a smooth next wave of purchases.

What the Info‑Tech guidance covers and who it targets

The guidance is aimed at CIOs, heads of data, and IT teams wrestling with AI pilots and scaling plans. Info‑Tech frames the problem around a few key ideas: “data operating models” — how a company organises people, processes and tools to manage data flow — and “maturity frameworks” — checklists firms commonly use to rate where they stand.

The report spells out methodology in plain terms. It reviewed recent company experiences, vendor pitches and common maturity models. It then mapped recurring weaknesses into practical labels that leaders can recognise, such as siloed decision making and overlapping governance. The guidance does not promise a single fix; instead it tries to make the weak links visible so organisations can choose where to focus limited time and money.

Core findings: why data strategies falter in practice

Info‑Tech lists several repeat problems that show up whenever AI projects lose momentum. Each is framed with short examples taken from corporate case notes or the report’s release.

  • Siloed decision‑making. Business units run pilots independently while central IT manages infrastructure. The result: duplicate work, mismatched tools, and confusion about which project should get priority. The report cites cases where sales, operations and finance each built separate models on different data copies, wasting time and money.
  • Overreliance on generic maturity models. Many organisations lean on off‑the‑shelf checklists that say a company is “mature” if it has certain dashboards or a data lake. Info‑Tech found that meeting checklist items did not always translate into operational capability — teams could tick boxes without changing day‑to‑day practices that drive outcomes.
  • Unclear operating roles. The guidance highlights muddled ownership: who decides data quality, who approves data to be used for models, and who shepherds a model from prototype into production. In several examples, projects drifted for months because stakeholders expected others to make final calls.
  • Tooling mismatches and duplication. Vendors promise broad coverage, and organisations buy many niche tools. When tools do not integrate, maintenance and integration costs balloon. The report notes instances where organisations spent more on stitching tools together than on the original modelling work.

How organisational friction turns into missed AI outcomes

The report’s deeper analysis points to structural causes that are stubborn and cultural. Talent gaps matter: teams may have skilled data scientists, but lack people who build reliable data pipelines or design operating processes that non‑technical users can follow. Those pipeline gaps mean models are starved of clean, well‑labelled input.

Governance is another recurring theme. Good governance balances speed and control; too little governance invites risky, inconsistent practices, while too much creates bottlenecks. Info‑Tech found many organisations default to heavy governance after a few data incidents, which then slows new projects to a crawl.

Third, expectations from vendors and consultants add pressure. Sales decks often promise broad turnkey solutions, but once a vendor leaves, the customer is left reconciling workflows the vendor did not own. This mismatch — between promised handoff and real operating needs — creates extra work and fatigue inside teams, pushing some leaders to trim AI budgets rather than expand them.

Where this guidance sits amid vendor claims and CIO concerns

The guidance lands at a junction of hype and cautious realism. Vendors still push integrated platforms and maturity ladders as the route to fast AI returns. Many CIOs respond with concern: they want results, but they do not want costly, fragile deployments that break when a new dataset arrives.

Consultants and service firms are already tweaking pitches to emphasise organisational change, but Info‑Tech notes that promises to fix culture in a quarter are usually overoptimistic. Public market signals are mixed: some large tech firms that sell AI infrastructure see continued demand, while parts of the enterprise software market report longer sales cycles when organisations ask more questions about deployment and governance.

What the guidance signals about the road ahead

The core takeaway is modest but important: buyers who treat AI as only a technology purchase are likely to slow their spending. The report warns of project delays and budget reallocations until firms sharpen how data moves and who makes decisions. That does not mean AI is dead — far from it — but the next phase will reward organisations that can make data work reliably inside daily operations, not just in isolated experiments.

For readers watching this shift, the practical implication is to watch whether companies start talking more about operating roles and less about tool lists. The market is now testing not just algorithms, but the human systems that let those algorithms make a difference.

Photo: Yan Krukau / Pexels

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