State of Enterprise Tech Spending, December 2025 (Battery Ventures)

Summary

• Nearly two-thirds (65%) of organizations plan to increase tech budgets over the next 12 months, and only 17% expect declines.p.4
• The average number of Gen AI use cases identified per company jumped from 36.5 to 88 over the last 12 months.p.4
• 33% of organizations already have agentic AI in production, and another 48% plan to go live within 12 months.p.4
• The survey covers 100 CXOs representing over $44B in annual technology spend.p.6
• 74% of enterprises report active Gen AI deployment plans, up from just 46% in Q1 2025.p.15
• 23% of enterprises have a Chief AI Officer, rising to 40% among enterprises with budgets over $1B.p.12

Key insights

1. Most enterprises view AI as augmenting people: 45% focus on augmentation, only 1% primarily on replacing, and 48% pursue a mix of both.p.3
2. Engineers using AI coding assistants report efficiency gains of up to 20%.p.3
3. In Q1 2025, 83% of CXOs report flat or increasing budgets, with 65% projecting growth.p.7
4. 69% of enterprises are experimenting with proof of concepts and piloting AI-powered workflows in limited environments, while 42% report scaling agentic AI across multiple business functions.p.11
5. Customer support & experience is the top Gen AI focus area at 74%, followed by IT operations & infrastructure management at 56%.p.14
6. Microsoft and OpenAI lead model usage, with 74% ranking Microsoft and 73% ranking OpenAI in their top 3.p.18
7. One in 10 enterprises already have fully autonomous workflows in production, and nearly 60% expect AI agents to fully own key workflows within the next two years.p.21
8. GitHub Copilot is fully deployed at 54% of respondents, ahead of Open Source tools and Cursor at 16% each.p.23
9. 23% of enterprises now have two Gen AI tools fully deployed, and 62% are still evaluating alternatives.p.23