More than two-thirds of CEOs plan to spend even more on AI in 2026, even though fewer than half of their current AI projects are making back what they cost. A new survey from Teneo shows this strange pattern is creating real tension in boardrooms.
What the Numbers Show
Teneo surveyed over 350 CEOs from major public companies and 400 institutional investors representing about $19 trillion in assets. The findings reveal 68% of CEOs are planning to increase their AI budgets this year. But less than half of current AI initiatives are actually generating positive returns.
When CEOs were asked where AI is working, they pointed to marketing and customer service. The tougher areas like security, legal work, and human resources are still struggling to show results.
Most large company CEOs think it will take more than six months before new AI projects start paying off. Meanwhile, 53% of investors expect to see returns in six months or less. That gap between what CEOs think is realistic and what investors are demanding is only going to get louder in 2026.
Why Companies Keep Spending Anyway
CEOs are focused on two main priorities: using AI to augment their workforce (50%) and upskilling their existing employees (46%). The survey found 67% of CEOs expect AI to increase entry-level hiring, and 58% think it will expand senior leadership roles too.
Global AI spending is expected to top $2 trillion in 2026. But here’s what most coverage is missing: this isn’t spending driven by clear returns. It’s spending driven by fear of being left behind.
Look at the data more carefully. Only 31% of large company CEOs expect the global economy to improve in the first half of 2026. That’s down from 51% just a year ago. Confidence is dropping. At the same time, AI spending is the fastest growing investment category.
That pattern reveals something important. When economic confidence falls but AI spending rises, companies view AI less as an opportunity and more as a survival requirement. CEOs aren’t betting on AI because it’s clearly working they’re betting on it because not investing feels riskier than investing.
The Real Problem Nobody’s Addressing
The areas where AI is delivering value are relatively low-risk applications like marketing campaigns and customer service chatbots. But the high-value, high-complexity areas like legal compliance and security operations are exactly where AI keeps struggling.
That creates an uncomfortable reality. The safe bets are working but don’t transform the business. The transformational bets aren’t working yet. CEOs are stuck in the middle, knowing they need to keep investing but unable to point to game-changing wins.
The real test for AI in 2026 isn’t whether companies keep spending they will. The test is whether this spending transitions from fear-driven defensive investment to results-driven strategic growth. Right now, most companies are still in the fear phase.
Cody Scott
Cody Scott is a passionate content writer at AISEOToolsHub and an AI News Expert, dedicated to exploring the latest advancements in artificial intelligence. He specializes in providing up-to-date insights on new AI tools and technologies while sharing his personal experiences and practical tips for leveraging AI in content creation and digital marketing