Firms raise AI budgets despite high project failure rates
92% of firms in the US, UK, Canada and Australia invested in AI last year; 83% plan larger budgets despite 78% reporting projects failed or stalled.
A study by workforce software firm Orgvue covering companies in the US, UK, Canada and Australia found strong growth in AI investment alongside frequent project setbacks.
The survey found 92% of firms invested in AI over the past year and 83% plan to increase their AI budgets this year. The share of organizations that raised AI spending by 50% or more rose to 32% from 27% the year before.
Despite rising budgets, 78% of respondents reported projects that either failed (35%) or stalled at the pilot stage. More than half, 57%, said they deployed AI mainly because competitors had implemented it rather than because of a clear internal strategy.
The research identified gaps in planning and capability. Eighty-four percent of participants said their organization needs an AI roadmap with clear return-on-investment targets. In 2025, 27% reported not having a clearly defined AI roadmap, and 25% said they did not understand which roles would benefit from AI.
Workforce issues were a central concern. Sixty-five percent expect AI to change their workforce within 12 months. Thirty-four percent said they lack the expertise to manage those changes, compared with 39% in 2024. Structural barriers to readiness were cited by 26% of respondents.
Organizations are taking steps to address skills and governance gaps. Forty-four percent increased learning and development budgets, 49% reported reskilling staff, and 52% have adopted policies governing AI use at work, up from 46% in 2024.
Oliver Shaw, chief executive of Orgvue, said, “In 2026 we see an urgency from business leaders to begin delivering value and reshape the workforce before their competitors do.” He also argued that many failed deployments reflect workforce design issues rather than purely technical problems, noting companies often automate processes without fully mapping affected roles and skills.
The survey indicates firms are moving from broad experimentation toward projects with measurable outcomes, stronger governance and explicit workforce planning to push more AI work out of pilot stages and into production.
