BOTTOM LINE UPFRONT
Justin D’Onofrio, Managing Director and Performance Management Lead, joined Devin Matthews on the ParkerGale PE FunCast to break down how PE-backed CFOs should budget for AI heading into 2027 and why most are still flying blind on the number.
Justin D’Onofrio joined the ParkerGale PE FunCast to tackle the question every CFO is bracing for this budget season: how do you size an AI budget?
As reported in our recent white paper, “The AI budget nobody knows how to build is due soon,” the numbers set the stage. 91% of PE-backed CFOs don’t know how to size their AI budget. 83% of portfolios have at least one AI pilot running, but only 18% are tied to measurable value. 65% of sponsors say their data infrastructure is still missing. Justin’s take: most companies are still budgeting for the tool. The shift now is budgeting for the outcome.
That starts with three questions we ask every client:
- What’s the return?
- What’s the cost as usage grows?
- Has anyone reviewed the number since it was approved?
Justin walked through our eight-step framework for answering them.
His clearest advice heading into budget season: assign every AI initiative an owner, tag it to a specific EBITDA lever, and give it a 90-day leash. Kill it if it’s not working, fund it if it is, and scale it if it’s great.
Just as important was Justin’s reminder not to let the process end at budgeting season. Review AI spend monthly or quarterly since token costs can balloon fast, and the value case can shift just as quickly. Embrace that consistency and you’ll have the historical data to size an AI budget with real confidence by next budget season.
Watch the full episode: