AI is rewriting the economics of tech services, and providers that move quickly to weave it into their clients’ data, cloud platforms, and security stacks stand to win big, according to new research from Bain & Co.

The consultancy firm’s latest Tech Services Buyer Survey found that, despite overall IT budgets expected to remain flat, spending on tech services is ramping up as customers look for support with deploying and securing AI.

Polling 280 US and European enterprise executives, three-quarters said they expect at least 5% to 10% of tech spending this year to focus on AI or machine learning, with technology‑led sectors planning to invest even more aggressively.

Bain found that around three in five banks and telco firms expect to increase their AI spending by up to 20% in 2026, closely followed by media, utilities, oil and gas, pharmaceuticals and retail firms.

As a result of that cash injection, executives have raised their expectations for AI-driven productivity, particularly in software development, testing automation and back office processes, with expected gains rising to between 15% and 17%. 

However, while AI and its related productivity benefits may be the most visible disrupters, the biggest expectations lie in highly scalable, cross‑industry activities, where repeatable solutions, not pilots or bespoke projects, will open new avenues for growth. 

The study found that client priorities are coalescing around a set of critical capabilities, with AI no longer considered a standalone function but a connective layer linking priority areas like cybersecurity (51%), enterprise enablement (40%), core system upgrades (37%), and data modernisation (29%).

According to Bain, this shift represents an opportunity for tech service firms that work to automate delivery, find ways to reuse assets, and move to platform-based delivery, but only those that evolve faster than the competition will be positioned to capture it. 

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That means moving away from selling individual capabilities to delivering integrated results tied to business outcomes, with tech buyers ready to reward providers that demonstrate repeatable, scalable, and measurable results rather than customised, time-and-materials engagements.

Those who hesitate could pay a heavy price, with Bain suggesting that up to 30% of revenue can slip away as buyers funnel IT budgets to providers with such demonstrable performance. 

“AI is becoming a core element of enterprise transformation and the CIO agenda,” said Megha Chawla, head of Bain & Company’s Global Technology Services sector. 

“As companies scale their investments, the focus is moving beyond experimentation toward how AI can support broader business priorities and create value across the enterprise.”