AI Budgets Poised to Jump as Executives Chase Future Revenue

News

1. Agentic AI Push Spurs Calls for Human Oversight, Clear Rules

2. India Plugs Into Pax Silica as AI Supply Chains Realign

3. India AI Impact Summit 2026: Did India’s Tech Push Just Take a Hit?

4. When Autonomous AI Tests the Limits of Oversight

5. UN Bets on Science to Steady AI Governance

6. Legacy IT Leaders Say India’s AI Future Lies in Talent, IP

Nearly eight in ten global executives expect artificial intelligence to become a significant revenue driver by the end of the decade, but most still lack clarity on where that revenue will come from, according to a new study by the IBM Institute for Business Value.

The survey of more than 2,000 C-suite leaders across 33 geographies and 20 industries found that 79% expect AI to contribute significantly to revenue by 2030, up from about 40% today. Yet only 24% said they have a clear understanding of the revenue streams AI will generate.

Optimism around AI is translating into aggressive spending plans. Executives expect AI investment to rise by nearly 150% by 2030, even as 68% warned their initiatives could fail without deeper integration into core business operations.

“AI won’t just support businesses, it will define them,” said Mohamad Ali, Senior Vice-President at IBM Consulting. “By 2030, the companies that win will weave AI into every decision and operation, moving faster than competitors and delivering measurable business results.”

AI budgets are also shifting in focus.  While nearly half of enterprise AI spending (47%) is currently aimed at efficiency, executives expect 62% of spending to target innovation by 2030.

About 70% plan to reinvest AI-driven productivity gains into growth, with respondents forecasting average productivity gains of 42% over the period.

As AI agents take over routine work, leaders see uniquely human capabilities becoming more valuable. “The capabilities that transcend any particular job, decision-making, judgment, strategy, collaboration, intuition, clarity of thought, will become even more necessary in a world where you can delegate a lot of the underlying work to an agent,” said Aaron Levie, CEO and co-founder of Box.

Despite growing confidence in AI’s impact, clarity on technology choices remains limited. While 57% of executives say future competitive advantage will depend on AI model sophistication, only 28% have a clear view of what models they will need by 2030.

Most organizations expect to adopt a multi-model approach: 82% anticipate operating with multiple AI models, and 72% believe small language models will outperform large language models for many enterprise use cases. Companies already scaling AI across workflows, using a mix of smaller, custom, and foundation models, expect 24% higher productivity gains and 55% higher operating margins by the end of the decade.

The study also highlights a gap between ambition and readiness in emerging technologies. While 59% of executives believe quantum-enabled AI will transform their industry by 2030, only 27% expect to be using quantum computing by then.

“Quantum will never stand alone,” said Dr. Thomas Eckl, Chief Expert at Bosch. “Classical computing, AI, and quantum must work together in connected workflows.”

AI’s impact is reshaping leadership and workforce structures. By 2030, executives expect 25% of enterprise boards to include an AI advisor or co-decision maker, and 74% believe AI will redefine leadership roles across organizations.

Workforce disruption is equally stark: 57% of executives expect most current employee skills to become obsolete by 2030, while 67% say mindset will matter more than technical skills. IBM’s analysis shows AI-first organizations are already responding faster, redesigning structures, creating new roles, and positioning themselves to turn AI ambition into sustained business value.