Report: 70% of orgs are spending $1M or more on AI

According to a new report by LXT, artificial intelligence (AI) spending is strong at mid-to-large U.S. organizations, and 40% rate themselves at the three highest levels of AI maturity, having already achieved operational to transformative implementations. A key component to success across all organizations is AI training data, in terms of both quality and investment.

The survey found that over a third of high-revenue companies are spending between $51 million to $100 million on AI, and seven in ten organizations are spending $1 million or more of their budget on AI. Enterprises are using AI to innovate, scale up and drive competitive advantage as well as gain internal efficiencies.

As part of the survey, executives placed their companies on the Gartner AI Maturity Model. According to the results, more than 40% of organizations have reached high levels of maturity, from operational (AI in production, creating value) to transformational (AI is part of business DNA) status. To get there, a quarter of maturing organizations are spending $51 million or more on AI, compared to just 8% of experimenters.

Mature organizations report that quality training data is the most important contributor to the success of their AI strategies. When asked about the benefits experienced as a result of high-quality training data, companies that are earlier in their AI journey see efficiency and agility gains, while more mature organizations report accelerated time to market and improved competitive advantage.

Four out of 10 organizations allocate a high proportion (upwards of 70%) of AI budget to training data. Quality AI training data creates more successful models, and due to the success that AI-mature companies are seeing, two-thirds of all organizations expect their need for training data to increase over the next five years.

LXT, in partnership with research firm Reputation Leaders, commissioned a survey of 200 senior executives (two-thirds C-suite) with AI experience at mid-to-large U.S. organizations (with annual revenue of over $100 million and more than 500 employees) that details the impact that AI investment is having across organizations of varying revenue levels and industries.

Read the full report by LXT.