West Monroe, an AI-native global consulting firm, today released The New Rules of Enterprise Software & AI Spend, a report comparing how software buyers and sellers see the market changing as AI reshapes technology investment. Most notably, the share of buyers allocating more than 10% of their IT budget to AI rose from 23% in 2025 to 74% in 2026.
As AI rewrites the rules of traditional IT and software models, CIOs face decisions about how much to spend, where to invest their budgets, and what to build or buy. Software sellers, meanwhile, are being asked to prove value and adapt products, packaging and pricing. This year's survey asked both buyers and sellers, adding a seller perspective to last year's buyer-only baseline.
"AI is already a budget decision, but buyers and sellers are moving at different speeds," said Dhaval Moogimane, Senior Partner and Software Industry Lead at West Monroe. "Buyers' choices about what to buy, where to invest and how they want to pay don't always match sellers' expectations. Staying close to those signals can help sellers align their product roadmaps and commercial models with what customers are prepared to adopt."
The survey identifies where buyer and seller views diverge, including three top findings: Software sellers overestimate how often buyers build AI solutions. 42% of buyers say they primarily buy vs. build AI solutions, but only 22% of sellers believe their customers primarily buy. Buyers and sellers don't fully agree on where AI investment is going. Both groups name employee productivity and AI assistants as a near-term priority — 60% of buyers and 65% of sellers select them. Beyond that, buyers emphasize infrastructure, model consumption, platforms and talent, while sellers put greater weight on AI agents. Software sellers are moving toward pricing models buyers don't prefer. Buyers prefer more predictable pricing models including enterprise subscriptions (33%) and usage-based pricing (24%). Yet 36% of sellers think hybrid pricing that includes outcome based pricing is what buyers prefer.
"AI is now eating software — but software isn't disappearing. It's being rebuilt around AI. As agents take on more work, value shifts from individual seats and features to the systems of work, powered by agents, that provide trusted data, context, controls and a way to get work done," said Bret Greenstein, Chief AI Officer for West Monroe. "Our survey captures the transition: buyers are funding practical use and foundational capabilities, while sellers are already looking toward an agent-led future. Software companies need to understand changing buyer preferences and their adoption of agents outside of software products."
West Monroe works with software companies on AI and product strategy, software engineering and modernization, pricing and growth, and cybersecurity. Across industries, it helps organizations set AI investment priorities, decide what to build or buy, develop and deploy AI solutions, measure returns, and redesign workflows and operating models to become AI-native.
About West Monroe
West Monroe is an AI-native global consulting firm built for today's pace of change. We combine deep industry expertise with modern technology and business transformation capabilities to help organizations move faster and deliver measurable impact with speed to value and certainty of results through execution excellence. We don't just talk about what's possible — we apply AI and technology where it matters most, pairing strategic insights with hands-on execution to help clients move from strategy to results, faster.
