AI is no longer a futuristic concept—it’s a core part of business strategy, and budgets are starting to reflect that shift. Our survey of over 3,000 business managers across the United States, conducted by Snowfire, dives into the question: “How much of your annual tech budget is currently allocated to AI and AI-related infrastructure?” The answers reveal a varied landscape, with spending patterns shaped by regional economies and industry priorities.
Nationwide, 28% of businesses allocate less than 10% of their tech budget to AI, while 20% dedicate 10-25%, and 12% commit 26-50%. Only 4% invest over 50%, indicating cautious but increasing adoption. States like Kansas (52% under 10%) and North Dakota (46% under 10%) show conservative spending, likely due to smaller tech ecosystems, while Hawaii (50% at 10-25%) and New Mexico (42% under 10%) suggest targeted investments in niche sectors.
A striking 36% of businesses report not tracking AI spending separately, with states like Vermont (100%), Idaho (57%), and Nebraska (55%) leading in this category. This lack of distinct tracking highlights a transitional phase, where many organizations are still integrating AI into broader tech budgets, particularly in less tech-centric regions.
Some states are pushing the envelope. Delaware (27% at 10-25%) and New Jersey (26% at 10-25%) show stronger commitments, likely driven by their proximity to financial and tech hubs. Similarly, Texas (28% at 10-25%) and New York (22% at 10-25%) reflect robust investments, aligning with their roles as innovation centers in energy and finance.
Rural states like Montana (45% not tracked) and South Carolina (50% not tracked) lag in dedicated AI budgets, while urban centers like California (24% under 10%, 23% at 10-25%) and Colorado (33% under 10%) show more structured spending. This divide underscores how urban areas, with access to tech talent and infrastructure, are better positioned to prioritize AI investments.
The modest 15% average allocation to AI suggests businesses are testing the waters, balancing innovation with fiscal caution. However, states like Rhode Island (17% over 50%) and New Hampshire (9% over 50%) hint at bold early adopters betting big on AI’s potential, particularly in healthcare and manufacturing.
AI budget allocations are a snapshot of a broader transformation. While many businesses are still finding their footing, the data shows a clear trend: AI is becoming a priority, even if incrementally. From Texas’s energy-driven investments to Rhode Island’s healthcare focus, regional differences highlight AI’s adaptability to local needs. As tracking improves and confidence grows, expect these budgets to climb, signaling AI’s deepening role in the future of work.
Online panel survey of 3,003 business managers based on age, gender, and geography. Internal data sources ensure representative population data through stratified sampling and post-stratification weighting. Respondents are selected from a geographically diverse, double-opt-in online panel, with questions designed to authenticate participants. Data quality is maintained through digital fingerprinting, bot checks, geo-verification, speeding detection, and thorough response reviews, including scrutiny of open-ended answers for accuracy and originality.
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