Business UpdateMay 27, 2026, 08:02 AM
Freshworks Report: Mid-Market Wastes $16.29B Annually on AI Complexity
AI Summary
Freshworks Inc. released "The Global Cost of Complexity Report: The Mid-Market AI Complexity Trap," revealing that mid-market companies waste an estimated $16.29 billion annually in the US due to AI complexity. The report, based on a survey of over 12,000 IT professionals, found that 86% of IT leaders report increased workload from AI complexity and 80% experience "AI slop." Despite 89% planning increased AI investment, only 15% have integrated AI across core operations, with many programs stalling due to deployment timelines exceeding executive ROI expectations. This has led to a shift in buying behavior towards AI solutions that deliver value quickly and integrate easily.
Key Highlights
- Freshworks report estimates $16.29 billion in US mid-market AI spend is wasted annually due to complexity.
- An average of 25% of mid-market AI spend is lost to complexity overhead.
- 86% of mid-market IT leaders report AI complexity has increased their team's workload.
- 80% of mid-market IT leaders report AI outputs introduce noise, errors, or rework, termed "AI slop."
- 89% of mid-market companies plan to increase AI investment over the next 12-24 months.
- Only 15% of mid-market organizations have AI integrated across core business operations.
- 72% of executives expect AI ROI within 8 months, but 55% say deployment alone takes 6-12 months.
- Mid-market buying behavior is shifting, with 90% favoring built-in workflows and 54% buying AI capabilities.
Price Impact
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