TLDR:
- AI solutions need to prove their ROI within three months, according to a survey of technology managers.
- 77% of managers believe that AI technology in software products has genuinely advanced beyond hype.
Why AI solutions have just three months to prove themselves
Software vendors are incorporating AI into their products, with data showing that the term “AI” was mentioned frequently on earnings calls. Despite the hype, technology managers have high expectations for AI ROI and are cautious in their software purchases. A survey of 1,940 executives and managers revealed that 56% had purchased an AI platform in the last three months, with 57% expecting ROI within the same timeframe, especially for AI tools. AI functionality has become a critical component in software purchases, with metrics like employee productivity and cost savings being key indicators of ROI. Additionally, buyers are looking for AI capabilities across various organizational areas, including data analytics, collaboration, and sales tools.
While AI is driving purchasing decisions, the overall software buying landscape shows greater caution. Technology managers are taking longer to make purchase decisions, with delays attributed to stricter vetting processes and involvement from financial and legal departments. Peer reviews and community forums are increasingly relied upon for purchasing decisions, with traditional analyst reports and vendor websites being viewed as less reliable sources of information. Ultimately, AI solutions have a short timeframe of three months to demonstrate their value and justify their implementation within organizations.