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TechRadar
Craig Hale

'A scramble for visibility and control, as spend surges': Less than a third of organizations know what their AI software spend is

A person typing on a laptop and using a tablet. Only their upper torso, arms and hands are visible. Text superimposed on the image shows AI .
  • Only 31% of companies say they have accurate AI software visibility – 36% for overall IT visibility
  • AI is complex to track because it's a layer that sits across existing categories
  • IT leaders are also under pressure to prove AI ROI

New data revealed in Flexera's State of ITAM report has revealed that only 31% of companies have accurate visibility into their AI software – an area of IT spend that continues to grow as new use cases emerge and models develop.

This comes as nearly three in five (59%) reveal wasted AI spend has increased over the past year, with increasingly complex software stacks being blamed for an overall drop in visibility.

Flexera found that complete visibility across IT assets has fallen to 36% – only slightly ahead of AI visibility – thanks to complex and intertwined SaaS, public cloud and hybrid environments.

IT stack visibility is getting worse, not better

According to the report, ITAM professionals now spend more of their time optimizing software (32%), but audit response (22%) also takes up a considerable amount of their time.

As for AI, Flexera believes it's difficult to track because it doesn't occupy its own category. Instead, models, agents and platforms sit across multiple systems as an additional layer.

"What we’re seeing is a familiar pattern of rapid adoption followed by a scramble for visibility and control, as spend surges," Chief Product Officer Becky Trevino wrote.

But ironically, Flexera also found that AI promises to automate some ITAM work, including processing software contracts, purchase orders, licences and renewals.

With IT professionals under more pressure to prove AI ROI, the next steps move beyond identifying which AI tools are being used to consider how they're being used, how much they cost and what data they access.

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