Famous last words - AI capX spending to continue in 2027 ?

Just came across this software spending survey from Jefferies.

1. AI spending does generate positive ROI in most use cases. But in 20% of responses, AI failed to deliver expected ROI.

2. Key positive use cases for AI are: software development (obviously), customer service, employee self service. Use cases that failed to deliver are: back office (say accounting/HR), employee self service (such as ITSM).

3. If AI spending is to increase, where is the money coming from ? Rise in overall budget + relocation from existing IT budget.

4. Cloud hyperscalers are expected to benefit the most from rising AI spending, follow by hardware, and maybe cyber security spending (coming up 3rd but quite far from top 2).

Read across => 1... Hyperscalers capX may well increase next year as ROI is yielding positive outcomes, 2.... AI spending is take share from other part of IT spend, 3.... Don't write off software makers.

PS... Allow me to say thank you to Julian F. Very much appreciate your help.