Businesses worldwide are sprinting headfirst into the artificial intelligence boom.
According to the newly released Flexera 2026 State of ITAM Report, a massive disconnect has emerged between the rapid adoption of AI and the governance frameworks needed to control it.
Based on a global survey of 512 technology asset management and financial operations (FinOps) professionals, the report shows that organizations are eagerly investing in generative AI and automated tools but are largely failing to track what they actually own or use.
AI adoption creates new ITAM blind spots
The data paints a picture of a corporate ecosystem moving too fast for its own good. While tracking or adopting new AI applications has skyrocketed (84%) to the top combined challenge for IT managers, actual oversight remains deeply flawed.
At least half of all surveyed organizations now track AI expenditures as part of their broader software budgets. Yet, only 31% of organizations report having accurate visibility into their AI software.
Wasted AI spend rises year over year
This severe blind spot has triggered immediate financial consequences: 59% of respondents report that their wasted AI spend has increased year over year.
“AI is changing the economics of IT faster than most organizations can adapt,” said Becky Trevino, chief product officer at Flexera.
Trevino compared the current situation to previous tech hype cycles.
“What we’re seeing is a familiar pattern of rapid adoption followed by a scramble for visibility and control, as spend surges,” Trevino noted, adding that successful transformations will require modernizing governance frameworks across on-premises, SaaS, and cloud silos.
Vendor audits add pressure to software teams
Compounding the problem of unchecked AI waste is a relentless wave of vendor compliance audits. Total visibility across IT estates fell to just 36% this year, largely driven by the layered complexities of cloud instances, sprawling SaaS subscriptions, and new AI tools.
Software vendors are taking advantage of this chaos to aggressively protect their intellectual property.
Nearly half of all organizations surveyed (48%) were hit with a formal software audit in the last year alone. Plus, 44% of companies report spending more than $1 million on software audits over the past three years, a high-dollar friction point that has remained stagnant across Flexera’s three most recent annual reports.
When it comes to the most aggressive auditors, Microsoft continues to dominate the field. A resounding 64% of respondents reported being audited by the tech giant within the last three years.
However, other legacy vendors are sharply ramping up enforcement actions. Oracle audits surged to 38% (up from 24% the previous year), while Adobe audits jumped from 24% to 32% over the same period.
Optimization becomes the top ITAM priority
As technology spending rises, organizations are increasingly focused on getting more value from existing software investments.
Flexera found that software optimization is now the top priority for software asset management teams, ranking well ahead of every other initiative. IT asset management professionals spend roughly one-third of their software-related time optimizing licenses, SaaS subscriptions, and cloud software usage.
The report describes a growing “save more, spend less” mindset across enterprises.
License reuse, contract negotiations, and rightsizing software deployments continue to deliver the biggest savings, while organizations search for ways to control costs across increasingly complex technology environments.
AI investments continue despite governance challenges
For many companies, the challenge is no longer whether to invest in AI. It is about bringing the same financial discipline and governance practices to AI that they previously developed for cloud and SaaS platforms.
While organizations continue to increase AI investments, the report warns that visibility, governance, and optimization capabilities are lagging.
As AI tools, models, and platforms become a permanent part of enterprise technology stacks, IT asset management teams will be expected to play a larger role in tracking usage, controlling costs, and reducing risk.