Forrester Predicts AI Funding Shift In 2027
CMOs will prioritize AI investments based on performance, not hype, as costs and risks become more apparent, according to Forrester. This shift may impact marketing strategies and budgets.
Original reporting · forrester.com
Original: “Predictions 2027: CMOs Reckon With An AI Reality Check”
Read “Predictions 2027: CMOs Reckon With An AI Reality Check” at Forrester →
How this was written. Awesome B2B wrote this article with a language model from Forrester’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Forrester’s report
- CMOs will prioritize AI investments based on performance, not hype, in 2027.
- The costs and risks associated with AI adoption will become more apparent, leading to increased scrutiny of AI projects.
- The rise of AI agents will lead to changes in the way marketers work, including the replacement of legacy tools.
- Marketers will need to develop strategies for mitigating the risks associated with AI, including pressure-testing and crisis planning.
- Despite potential setbacks, AI will continue to play a major role in marketing strategies
In 2027, chief marketing officers will face a new reality when it comes to artificial intelligence investments, Forrester reported. The days of automatic funding for AI projects are coming to an end. Instead, CMOs will need to justify these investments based on their potential to drive business results.
A recent survey found that a large majority of marketing executives expect to be held to a higher standard when it comes to demonstrating the value of AI investments. This increased scrutiny will lead to a more careful evaluation of AI projects and a greater emphasis on measuring their impact.
As AI adoption grows, so do the costs associated with its use, according to Forrester. Marketers will need to carefully consider these costs and make tough decisions about which AI initiatives to pursue. This may involve scaling back or eliminating projects that are not delivering sufficient returns.
The rise of AI agents will also lead to changes in the way marketers work, Forrester predicts. Some companies will begin to replace legacy marketing tools with AI-powered agents, streamlining their workflows and reducing complexity. This shift will require marketers to rethink their processes and operating models.
Despite the potential risks and challenges associated with AI, marketers are unlikely to abandon its use, Forrester reported. Instead, they will need to develop strategies for mitigating these risks and addressing potential setbacks. This may involve pressure-testing AI experiences and developing crisis plans.
In the year ahead, some brands will likely experience AI-driven growth setbacks, but this will not deter marketers from continuing to invest in the technology, according to Forrester. The benefits of AI, including its ability to drive business results and improve customer experiences, will outweigh the risks for many companies.
Questions and answers
What is driving the shift in AI funding?
The shift is driven by the need for CMOs to justify AI investments based on their potential to drive business results, as costs and risks become more apparent.
How will the rise of AI agents impact marketers?
The rise of AI agents will lead to changes in the way marketers work, including the replacement of legacy tools and the streamlining of workflows.
What can marketers do to mitigate the risks associated with AI?
Marketers can mitigate risks by pressure-testing AI experiences, developing crisis plans, and carefully evaluating AI projects.
