Gartner Finds Just 3% of Companies Hit AI Cost-Cutting Targets

Gartner reports that only 3% of businesses are successfully saving money through artificial intelligence productivity gains. Despite these disappointing financial returns, 85% of companies plan to spend more on the technology next year.

The research group shared these numbers at its HR Symposium in Orlando. The data shows a wide gap between what top leaders expect and what actually happens. While 77% of board members expect artificial intelligence to lower costs and boost productivity, 97% of organizations fail to achieve cost savings through productivity alone.

CV Viverito, a senior director analyst for Gartner, explained that businesses should not expect to generate cost savings from artificial intelligence right now. Instead, Viverito noted that the bigger opportunity lies in using the technology for tasks that were not possible before, such as helping workers shift their time into new skills and sources of growth.

Financial strain is already showing across the industry as nearly four in ten companies exceed their artificial intelligence budgets. This trend matches broader research from other groups. A January global survey by PwC showed that 56% of chief executives had seen no money or revenue benefits since introducing artificial intelligence to their businesses. Additionally, a 2025 MIT report concluded that 95% of artificial intelligence projects do not increase profits.

Gartner recommends that businesses agree on what they hope to achieve, noting that 78% of chief HR officers report a lack of leadership agreement on where the technology creates value. The firm also suggests focusing investments where artificial intelligence can make a real difference, helping managers redesign jobs, and putting the time saved by workers toward more innovative tasks.

Summary

Even though artificial intelligence rarely cuts costs or boosts profits right away, companies continue to invest heavily in it. Understanding these limits helps leaders shift their focus toward new capabilities instead of expecting immediate budget cuts.