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All issuesVolume 340, Issue 4IT NewsCxO

End-User AI Spending to Soar as CIOs Grapple With Costs

CIO Dive, Monday, July 20th, 2026

Global AI spending will jump 63% to $64 billion in 2026, forcing CIOs to scrutinize budgets more closely.

Gartner research projects end-user spending on AI models and platforms will reach $64 billion in 2026, representing 63% growth. CIOs are responding by prioritizing usage efficiency, cost control and measurable outcomes.

Recommended strategies include contract management with token pricing limits and multivendor routing that selects cost-effective models per task.

Establishing governance processes staffed with AI expertise helps prevent unnecessary expense and enforces disciplined departmental spending.

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