Tomasz Tunguz blog (Theory Ventures) · 2024-10-01
· 611d
Sources of AI Budget Allocation: Survey Analysis of CIO Spending Patterns
Morgan Stanley surveyed CIOs on AI budget sources, finding 41% allocate net new spend, 35% repurpose existing software budgets, and only 6% redirect professional services funding. The analysis suggests first-mover enterprises create dedicated AI budgets while followers reallocate existing spend, with implications for ROI justification and competitive dynamics in enterprise software markets.
Metrics in this report
CIO AI Budget from Net New Spend
41%
percentage of surveyed CIOs
Morgan Stanley CIO survey on AI budget sources
CIO AI Budget from Professional Services Reallocation
6%
percentage of surveyed CIOs
Morgan Stanley CIO survey on AI budget sources
CIO AI Budget from Repurposed Existing Software Spend
35%
percentage of surveyed CIOs
Morgan Stanley CIO survey on AI budget sources
Hyperscaler AI Capex
100$B
annual deployment estimate
Industry-wide hyperscaler AI infrastructure investment