ISG: enterprise AI shifts from enthusiasm to accountability

ISG says enterprises keep spending on AI but now demand measurable returns, with award volumes and average contract value flat as firms make fewer, bigger bets. Confidence dipped through 2025 and early 2026 but is now recovering.

• ISG: boardroom AI mentions run 6x higher than before ChatGPT launched
• Award volumes and ACV are flat as enterprises make fewer, larger bets
• Google Cloud grew 82%, with most of its $514B backlog in typical GCP contracts
• Nearly 90% of Microsoft cloud revenue comes from non-frontier model companies