CIO.com · September 25, 2026 · On the brief until October 9, 2026

AI spending puts the squeeze on IT modernization, risking ROI

FinanceAccountingInformation Systems

THE AI ANGLE

Diverting budget away from foundational IT modernization

Many companies are pausing or cutting legacy IT modernization projects to redirect funding toward AI initiatives. This shift leaves core infrastructure underfunded even though new AI tools require updated data and systems to operate. Financial and IT managers must now address mounting budget overruns and misaligned project costs.

Summary written by AI Business Lens with an AI model from the article at cio.com. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE

Students can debate whether AI and IT modernization should compete for capital or share a single combined business case.

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AI spending puts the squeeze on IT modernization, risking ROI

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