AI Spending Surges Amidst Governance Challenges in 2026

Galorath's 2026 State of the Industry Report reveals a notable increase in AI investment, with 79% of organizations boosting spending on estimation. However, only 25% have clear AI policies, reflecting a lag in governance. The report, based on a survey of 220 professionals from 12 countries, shows a growing gap between AI adoption and governance structures.

The findings indicate that while AI integration has grown, governance has not kept pace. Organizations are adopting AI quickly, yet many are doing so without formal oversight, leading to ungoverned AI use, termed "shadow AI," in 70.9% of operations. This trend is accompanied by a 77.7% report of data governance restrictions.

The report also highlights a divide in outcomes: 51% of organizations increasing AI investment see improved planning accuracy, versus 11% of more cautious entities. Factors like trade policy and cost volatility are major disruptors, further complicating the business landscape.