New Research Shows How Targeted AI Investments Can Reduce IT Operational Costs

Chief information officers (CIOs) are trapped. Eighty-three percent of IT spending and 66% of staff time goes to "keeping the lights on" — maintaining existing systems instead of building new ones, according to Info-Tech Research Group. A new blueprint shows how AI can break this cycle and free up capacity for work that actually moves the business forward.
The numbers tell a stark story. Info-Tech Research Group found that IT teams spend the vast majority of their resources on KTLO — "keeping the lights on." This means fixing broken systems, patching vulnerabilities, and handling routine operations. Very little budget reaches strategic projects that could drive competitive advantage.
Intelligent incident management and AIOps are the key tactics, Info-Tech Research Group says. These tools detect anomalies early. They connect data across separate operational silos. They predict maintenance needs before failures happen. And they automate the routine fixes that consume staff time every single day.
Info-Tech Research Group offers a practical assessment process. Step one: identify where AI can cut costs. Step two: calculate how much staff time gets reclaimed. Step three: set implementation milestones. Step four: build AI skills across the workforce. This approach treats AI investment as a learning opportunity, not just a cost-cutting exercise.
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