Gartner finds only 3% of organizations say they have hit their AI return targets

Companies are preparing to spend more on AI before most have achieved the returns they wanted. Gartner found that only 3% of organizations say they have met their AI-related productivity, efficiency and cost-reduction targets, according to TechRadar. The shortfall comes as most companies plan to increase spending again in 2027.

Spending plans outpace results

The findings put a gap between boardroom expectations and current outcomes. Three-quarters of board members anticipate productivity and savings returns from their companies’ AI spending, HR Dive reported. Yet Gartner found that 97% of organizations could not cut expenses solely through productivity measures.

Gartner senior director analyst CV Viverito said 38% of companies were already over budget on AI, while 85% planned to spend more in 2027. Viverito’s diagnosis centers on what happens after AI frees up employee time:

Time saved is not time redeployed

A Gartner survey of more than 1,800 employees gives a closer view of that problem. Just 21% of the time saved by AI was redirected into more innovative work. Gartner says employees need additional skills to produce better-quality AI-enabled work.

Viverito’s proposed opportunity is not simply to run existing tasks at lower cost. It is to use AI for work that was not previously possible, shifting employee time toward new capabilities, outcomes and sources of growth.

Leaders still need a shared target

Agreement about where to use AI is another obstacle. Gartner found that 78% of leaders were not aligned on how AI was helpful in their workplace. Arj Bagga, a vice president analyst in its HR practice, said a lack of shared priorities creates a disconnect over how to position the workforce and capture value from investment.

Bagga said many leaders regard AI as a reason to work differently but remain anchored in existing processes. He urged them to consider how work could be done in the future, then refine those possibilities against reality.

Gartner’s advice is to concentrate AI efforts where they can have a tangible effect and spread AI knowledge throughout the business. That includes senior executives and entry-level employees identifying useful applications. HR teams should work with leadership on workplace value and prepare for the employee implications of concentrating AI unevenly.