Enterprise IT Spending Set to Rise 5% in 2027 as AI Budgets Expand
Techstrong IT, Friday, September 25th, 2026
IT spending is forecast to grow 5% in 2027 as AI absorbs budget once spent on hardware and consulting.
Enterprise IT spending is projected to rise 5% in 2027, the strongest outlook since October 2022, but growth masks a reallocation toward AI.
More than half of enterprises (53%) have overrun AI budgets in the past six months, prompting about 60% to cut consultant spending and 57% to delay hardware refreshes.
Hardware inflation is running at 7.3%, more than double last year's rate, while cloud growth has slowed to 7.2%, the weakest of nine categories tracked. Security software is the standout, with 7.9% expected growth as firms prioritize protection.