CMOs Face Pressure for AI Growth as Marketing Budgets Remain Flat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
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Should l Buy IT?
Source: Newsfilter
- Current AI Investment: According to Gartner's survey, CMOs allocate an average of 15.3% of their marketing budgets to AI initiatives, yet 70% acknowledge that their internal processes are not mature enough to effectively implement AI, thereby limiting potential growth and efficiency gains.
- Budget Allocation Challenges: Despite a slight increase in marketing budgets to 7.8% of company revenue in 2026, 56% of CMOs report insufficient budget to achieve their strategic goals, forcing them to make stricter decisions on resource allocation to ensure the effectiveness of AI investments.
- Maturity Gap: The survey reveals that CMOs with mature AI capabilities allocate 21.3% of their budgets to AI, significantly above the average, indicating that AI maturity is becoming a key differentiator between marketing leaders and laggards.
- Resource Constraints Impact: CMOs are being asked to deliver growth and transformation without meaningful budget expansion, with 54% reporting insufficient resources, compelling them to make informed, data-driven choices regarding investment priorities.
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Analyst Views on IT
Wall Street analysts forecast IT stock price to rise
11 Analyst Rating
4 Buy
6 Hold
1 Sell
Moderate Buy
Current: 152.960
Low
150.00
Averages
190.70
High
240.00
Current: 152.960
Low
150.00
Averages
190.70
High
240.00
About IT
Gartner, Inc. delivers actionable, objective business and technology insights. Its segments include Business and Technology Insights (Insights), Conferences, and Consulting. The Insights segment delivers independent, objective insight to leaders across an enterprise through subscription services that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts located around the globe. The Conferences segment is designed for information technology (IT) and business executives as well as decision-makers looking to adapt and evolve their organizations through disruption and uncertainty, navigate risks and prioritize investments. The Consulting segment serves chief information officers and other senior executives to optimize technology investments and drive business impact. It also provides solutions for a range of IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Surging Demand: The massive demand for NAND flash from AI data centers has led to significant price increases for Sandisk's products, with NAND flash prices expected to surge by 234% in 2026, further driving revenue growth for the company.
- Long-Term Contracts: Sandisk secured three multi-year supply agreements worth a combined minimum of $42 billion in the previous quarter, ensuring future revenue streams, and has signed two additional contracts in the current quarter, showcasing its strong competitive position in the market.
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See More
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- Long-Term Contracts: Sandisk signed three long-term supply agreements worth $42 billion last quarter, strengthening its revenue pipeline, and has already secured two new contracts this quarter, reflecting sustained customer demand for its products.
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