Cutting the cost of complexity

Cutting the Cost of Complexity

The IBM Institute for Business Value (IBV) has released a new study showing that automation is now a vital necessity for sustaining digital transformation, not merely an optional upgrade. The findings were featured in IBM’s Think newsletter.

Across industries and corporate infrastructures, systems once designed to improve agility and insight are now creating operational bottlenecks. The IBV study concludes that intelligent automation has become the primary method to manage the growing complexity of enterprise technology.

Key Findings from the Study

The research surveyed 680 IT leaders across 21 countries.
Companies using intelligent automation reported lower costs, stronger security, and increased business growth.
Automation is viewed as the essential discipline that sustains digital transformation efforts.

“AI isn’t the problem anymore, it’s the solution to its own complexity,” said Jacob Dencik, Research Director at IBM IBV and lead author of the study. “The challenge is that most organizations haven’t yet learned how to make it work for them.”

IT Spending Trends

The study describes information technology as “the powerhouse of the modern enterprise,” yet many IT departments still struggle with outdated systems, fragmented data, and uncoordinated procurement. Since 2023, average IT spending has risen by 50%, increasing from 6% to 9% of company revenue, with two-thirds of those budgets now directed toward transformation rather than maintenance.

Author’s Summary

IBM’s latest report emphasizes that automation is not an enhancement but a survival strategy for organizations overwhelmed by digital complexity.

IBM — 2025-11-05