Why AI Spending Will Soar in 2025: Key Trends Revealed

Artificial intelligence (AI) is now indispensable. Companies worldwide are doubling down on AI investments, focusing on innovation and measurable results.

IBM commissioned a research with Morning Consult and Lopez Research study that revealed exciting trends. The research surveyed over 2,400 IT decision-makers (ITDMs) and highlighted strategic shifts in AI adoption. 

Companies are prioritizing open-source tools to boost innovation and ROI.

AI Investments and Open-Source Ecosystems

Businesses now consider AI essential. The report shows that 89% of companies plan to maintain or increase AI spending in 2025, and 62% will significantly raise budgets.

Nearly 40% plan to boost spending by 25-50%. Only 5% will reduce spending, and no cuts will be made by more than 50%. Organizations recognize that AI is critical to staying competitive.

Companies aim for faster execution and tangible results. They prioritize use cases that drive efficiency and value.

The top investment areas include IT operations (63%) and data quality management (46%). Product and service innovation follows at 41%. These priorities reflect a demand for better tools and processes.

Businesses aim to enhance services while maintaining a competitive edge.

Open-source tools are game-changers. Businesses increasingly rely on them to power AI innovation, and this trend is set to grow in 2025. Currently, 60% of surveyed companies use open-source tools for AI.

Next year, this figure will rise to 41%, up from 37% in 2024.

Open-source ecosystems offer a clear advantage. Companies using these tools report higher ROI. The report shows that 51% of open-source users achieve positive ROI.

By contrast, only 41% of non-users report the same.

Larger enterprises are especially keen on open-source solutions. Their scalability and cost-effectiveness make them indispensable. Over 80% of respondents say at least 25% of their AI platforms rely on open source, and larger firms often exceed 50%.

Open-source users are leading AI pilot programs—thirty-eight percent plan to launch 21 or more pilots in 2025. By comparison, only 26% of non-users plan the same.

Open source accelerates experimentation while reducing costs.

Businesses also optimize AI strategies in other ways. Over half of the surveyed ITDMs plan to use managed cloud services. Similarly, 48% prioritize hiring specialized talent.

These moves position businesses to achieve AI success faster.

Execution speed is a top priority. Most companies (58%) move from pilot to production in under a year. Businesses aim for tangible outcomes instead of endless trials, focusing on implementation to achieve results.

Redefining Metrics for AI Success

Measuring AI success has changed. Companies look beyond hard dollar savings. Instead, they value faster development, innovation, and productivity gains.

Nearly half (47%) of surveyed companies report positive ROI from AI—about 33% break even, while only 14% report negative returns. Businesses also see AI as a long-term investment.

Among those not yet seeing ROI, 92% expect positive results within three years.

Key metrics include time savings, faster development, and rapid innovation. Over 25% prioritize software development speed. Another 23% focus on innovation, while 22% value productivity improvements.

Hard dollar savings, though important, rank lower at 15%.

The report states, “Innovation is driving investments. ” Companies balance ROI goals with staying ahead of competitors. This dual focus ensures both short-term and long-term success.

Firms understand that innovation fuels growth even when savings take time.

Open source is key to this shift. Its flexibility allows for rapid adoption and scaling, enabling organizations to optimize processes faster and improve efficiency.

Businesses now blend measurable returns with innovation-driven strategies. The benefits of open-source ecosystems are evident in faster results and higher ROI.