CMOs turn to AI as 59% face budget constraints in 2025: Report

Marketing budgets have remained flat for a second consecutive year at 7.7% of total company revenue, according to Gartner’s 2025 CMO Spend Survey. The findings, based on responses from 402 senior marketing leaders across North America, the UK and Europe, highlight a sustained trend of budget stagnation amid ongoing macroeconomic uncertainty.

Despite the static budgets, 59% of chief marketing officers said they lack sufficient funding to fully execute their 2025 strategies, though this marks a slight improvement from 2024. To counter budget constraints, CMOs are prioritising productivity, particularly by leveraging artificial intelligence and data analytics to optimise performance.

Generative AI has emerged as a key tool, delivering returns primarily through time and cost efficiencies. Nearly half of respondents cited improved time management as a major benefit, while 40% reported cost savings. Only 1% of CMOs said GenAI was not a current priority.

Paid media continues to dominate marketing spend, accounting for 30.6% of budgets. However, rising media costs are reducing its overall value. In response, many CMOs are cutting agency and labour expenditures. Thirty-nine per cent plan to reduce agency budgets, while an equal proportion are looking to streamline labour through role simplification and headcount reduction.