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Olga Shendetskaya
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AI growth shifts existing IT budget, Carolina Milanesi notes

AI growth shifts existing IT budget, Carolina Milanesi notes
Most new AI spend reallocates IT budget

Carolina Milanesi highlights recent data showing that only 28 cents of every incremental AI dollar represents a net increase in the overall IT budget.

The remaining 72 cents are being redirected from areas such as software, services, headcount, BPO, and license consolidation. This breakdown suggests that much of AI's current expansion within organizations is coming from a reallocation of existing IT resources rather than fresh spending.

Milanesi has previously tracked usage trends in AI tools. In a recent report, she noted that Copilot weekly engagement now matches Outlook. The focus in that analysis shifted to user satisfaction as a key performance indicator.

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