For the past few years, the business world has been sprinting to see what Artificial Intelligence (AI) can do. But according to new data from Cranbury-based software firm Infragistics, the honeymoon phase is over.
The company’s annual Reveal Top Software Development Challenges Survey, released Jan. 29, shows that while AI is delivering real productivity boosts, New Jersey tech leaders and their global peers are hitting the “brakes of reality.” A mix of high costs, a shortage of skilled workers, and global instability is forcing a strategic “reset.”
The report, which surveyed 250 senior tech executives, describes a tug-of-war. On one side, AI is working: 53% of companies saw productivity jump last year. On the other side, the world is getting more expensive and complicated.
“The data signals a decisive shift from experimentation to disciplined execution,” Casey Ciniello, senior product manager at Infragistics said. “The organizations that win will be those that focus AI investment on clear, near-term business results.”
The survey identified several major “speed bumps” that are keeping CEOs up at night this year:
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The talent gap: 50% of leaders say finding and keeping skilled tech workers is their biggest headache. There simply aren’t enough people who know how to manage complex AI systems.
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Budget cuts: About 25% of organizations plan to trim spending this year. They blame inflation (60%), rising costs (58%), and new tariffs (50%) for the tighter belts.
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Security concerns: Integrating AI safely is now the number one technical challenge. Companies are worried about data privacy and the growing threat of AI-driven cyberattacks.
In 2024 and 2025, many companies experimented with AI just to see what would happen. In 2026, the focus has shifted to Embedded Analytics.
Instead of using a separate, complicated tool to look at data, 76% of companies are now building data charts and AI insights directly into the apps their employees use every day. The goal is to make “data-driven decisions” faster without needing a PhD in math.
“AI and analytics are no longer optional—they are essential,” the report concludes. “However, success in 2026 will depend on execution.”
Despite the caution, there is still room for optimism. Nearly 46% of companies expect to grow their revenue this year—double the number from last year. The message for New Jersey’s tech sector is clear: AI is the engine, but smart management and a focus on the “bottom line” are the steering wheel.
