IBM/Apptio: Tech Spend Visibility in the AI Era

In the race to adopt cutting-edge technologies like artificial intelligence, businesses are increasingly facing a challenging financial equation: how to balance innovation with realistic budgets. 

As AI investments accelerate, many organisations are discovering that proper visibility across technology expenditure isn't just beneficial—it's essential for survival.

In exclusive comments to Fintech Magazine, Ajay Patel, General Manager at Apptio and IBM IT Automation, observes a growing trend among technology leaders who are questioning the true value proposition of their AI implementations.

“In 2025, we're hitting the peak of hype for technologies such as AI with every solution being branded as 'AI powered',” says Ajay. 

“Investors are investing billions in AI startups and businesses are experimenting with multiple models to stay on the forefront of leveraging this disruptive technology.”

While the potential rewards—from improved efficiency to automated processes—are significant, Ajay notes that organisations are encountering serious financial constraints. 

“Many IT leaders are recognising the limitations, risk and cost. They are asking where they should put AI to work in production and whether they'll quickly be able to prove the return on investment of new solutions.”

The AI Investment Paradox

Recent data from Apptio reveals a concerning disconnect: despite 91% of UK organisations expecting their technology budgets to increase this year, the actual cost of implementing AI will likely exceed available funds. 

According to the research, 43% of organisations plan to fund AI initiatives from existing budgets, while 50% hope to finance them through cost savings generated by the very same AI investments—a circular logic that demands careful scrutiny.

“As we continue to layer technologies, creating complex tech stacks, it can be harder to realise the value and capture the savings without implementing a proper technology business management framework,” Ajay explains.

This visibility challenge isn't new. The same research found that 83% of businesses still struggle to demonstrate concrete ROI for their cloud transformations—a sobering statistic given that cloud adoption preceded the current AI boom.

“By prioritising visibility now, organisations can make more informed choices and limit unnecessary spending,” says Ajay, emphasising the need for proactive management rather than reactive cost-cutting.

Lessons from the Cloud Cost Crisis

The cloud spending predicament offers valuable lessons for the AI investment journey. Many organisations embraced cloud technologies for their ability to accelerate digital product delivery but now find themselves at a critical juncture with spiralling costs and unclear business value.

“Caught up in the rush to adopt, many have now reached a critical point with cloud cost out of control, inability to forecast cloud spend, or demonstrate value delivered to the business,” Ajay observes. 

“Another consequence is that over time, businesses are also left with cloud sprawl, under-utilised or over-provisioned resources and expensive operations.”

The solution, according to Ajay, lies in implementing robust financial management systems specifically designed for technology investments. 

“By adopting a cloud financial management platform and embedding technology business management principles, teams can track costs in real-time, optimise spend, accurately allocate resources and make data-driven decisions.”

Integrating Sustainability into the Financial Equation

This visibility extends beyond pure financial considerations to encompass sustainability goals—an increasingly important factor for investors and customers alike. 

Ajay advocates for a practice known as "Greenops," which integrates environmental impact assessments into standard cost review processes.

"Pushing sustainability initiatives forward and keeping business processes efficient shouldn't require lots of trade-offs," he says. 

“To strike the right balance, organisations should look to develop their ability to consider sustainability alongside their regular cost review processes. 

“This change in mindset emphasises balancing operational and financial efficiency with sustainability, considering the environmental impact of every operational decision, rather than treating it as an afterthought.”

Ajay points to NatWest as an exemplar of this integrated approach. By implementing a Technology Business Management platform, the bank successfully tracked the carbon footprint of technology across its entire operation. 

This comprehensive visibility enabled targeted interventions that have contributed to a 46% reduction in direct operational emissions since 2019.

“This brought to light the carbon footprint and related costs for every business unit and helped drive systemic change in support of the company's aggressive climate agenda,” Ajay explains. 

“In today's complex technology landscape, organisations that establish clear visibility across both financial and environmental impacts will be best positioned to make strategic decisions that deliver genuine business value.”

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