New research from Forrester shows that 25% of planned AI budgets will be deferred to 2027. We explore why strategic automation with AI is the path forward.
According to Forrester’s 2026 Technology and Security Predictions report, enterprises will defer roughly 25% of their planned AI budgets to 2027 as initial investments fail to generate the expected returns.
It’s the latest sign that the AI gold rush is giving way to a more measured, outcome-oriented vision for innovation, where pragmatic execution matters more than grand ambitions.
AI isn’t going anywhere, but the approach must evolve.
The Reality Behind the Retrenchment
Forrester analysts attribute the budget slowdown to a widening gap between AI promises and measurable business impact. Many organizations that rushed to scale generative and agentic AI discovered integration challenges, mounting costs, and elusive ROI.
Now, with CFOs demanding accountability and IT leaders re-evaluating projects, the enterprise focus is shifting from “build big” to “build smart.”
“AI isn’t going anywhere, but the approach must evolve,” said Max Kovalskiy, Director of Customer Operations at Boston SoftDesign (BSD). “Too many companies jumped into AI with lofty visions and no operational blueprint. What we’re seeing now is a necessary correction from experimental blunders to disciplined adoption. The winners will be the ones who start with measurable process improvements and scale from there.”
That correction aligns perfectly with BSD’s long-standing philosophy: start small, prove value, and scale responsibly. As explored in BSD’s recent webinar on the myths and realities of AI in its current state, enterprises achieve lasting success when they anchor AI to tangible business outcomes, including improved workflows, reduced manual effort, and measurable ROI, rather than chasing untested platform-wide transformations.
Targeted automation delivers the most reliable returns on AI investment.
Building a Smarter AI Roadmap
BSD’s own research and client work confirm that targeted automation delivers the most reliable returns. By focusing on high-value, low-risk processes and building on those successes, organizations can scale AI adoption organically and sustainably.
During BSD’s recent AI webinar, IT leader Jim Pierce said, “AI is here to stay, and leaders must start integrating it now to remain competitive. IT leaders should build a roadmap for AI adoption, even if it starts with small proof-of-concept projects.”
In practice, that means identifying repeatable use-cases, such as intelligent service request routing, data-driven performance monitoring, or agentic task automation, and building cross-functional teams that align business and technical objectives from day one. BSD’s expertise bridges both sides of that equation: business-process insight and enterprise-grade technical execution.
These deferrals reflect a market realization that sustainable value comes from disciplined implementation.
From Deferral to Discipline
The projected 25% AI budget deferral isn’t a retreat from the technology and the value it offers, but it is a reset. It reflects a market realization that sustainable value comes from disciplined implementation, not headline-grabbing pilots. Organizations that pivot toward pragmatic AI automation with a clear business case will be positioned to capture the next wave of ROI once the hype cycle stabilizes.
As Kovalskiy summarized, “This isn’t the end of enterprise AI. It’s the beginning of AI that actually works.”