Cut the cost of complexity
How intelligent automation unlocks IT value
In today’s AI-first enterprise, IT isn’t just a support function. It’s a growth engine.
But many organizations are still held back by complexity, technical debt, and disconnected systems.
According to new research from the IBM Institute for Business Value (IBM IBV), the path forward lies in intelligent IT automation. When AI and automation converge, IT becomes a driver of innovation, resilience, and measurable business value.
Reducing complexity to accelerate transformation
IT complexity has real financial consequences. Between 2023 and 2025, IT spending is projected to rise 50%—from 6% to 9% of revenue—driven by both modernization and AI investments.
But much of that spend still goes toward maintaining outdated systems. Our study found that shadow IT accounts for nearly a quarter of total IT budgets, creating inefficiencies and security risks.
Highly automated organizations, by contrast, spend less overall—just 6.8% of revenue—while achieving stronger performance. How? By using hybrid cloud architectures to integrate data and automate workflows, reducing waste and unlocking agility.
Recommendation: Start by mapping your IT complexity. Identify redundant tools, legacy systems, and integration gaps that automation can address quickly.
IT budgets are shifting toward business transformation
Building end-to-end intelligent workflows
Automation is evolving—from robotic process automation (RPA) to agentic, AI-enabled workflows that think and act autonomously.
Our report shows that 89% of highly automated organizations are already implementing generative AI in IT processes, compared to only 15% of less automated peers. These organizations use AIOps platforms to connect workflows, improve data accuracy, and cut operational costs by 22%.
Recommendation: Invest in platforms that unify operations, data, and infrastructure. Use AI agents to handle routine tasks such as provisioning, monitoring, and compliance—freeing teams to focus on innovation.
Optimizing operations for AI-powered ROI
Automation delivers exponential value when combined with optimized IT operations.
The most advanced organizations—those that have scaled automation across the enterprise—report a 90% ROI from digital transformation. They leverage practices like DevSecOps and site reliability engineering to embed security and agility into every process.
Partnerships also play a key role. In highly automated enterprises, finance and IT work together to analyze digital investments and reinvest savings into future transformation initiatives.
Recommendation: Align finance and IT on shared metrics for automation ROI. Use data-driven insights to guide reinvestment and sustain long-term transformation.
The path forward
Intelligent IT automation isn’t a technology trend. It’s a business imperative. Organizations that modernize legacy systems, connect infrastructure systematically, and infuse intelligence into every workflow can dramatically reduce costs, improve resilience, and accelerate growth.
Download the full report to learn how your organization can simplify IT and amplify results.
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