Cost Transformation Gaps: 96% of Firms Pursue Savings, but Only 14% Deliver Full Value
Event summary
- 96% of organizations are pursuing, have completed, or are planning a cost transformation.
- 76% have made or plan to make their cost transformation commitments public.
- Only 14% fully captured the value targeted by their highest-priority initiative in 2025.
- 55% of organizations pursuing AI-enabled cost transformation say their current technology environment cannot fully support those efforts.
- 77% expect to invest between $0.20 and $0.90 for every dollar of savings targeted, but just 24% account for value leakage when setting targets.
The big picture
Cost transformation is shifting from a defensive cost-cutting measure to a strategic growth lever. However, Deloitte's survey reveals a significant disconnect between leadership confidence and actual execution, with only 14% of organizations capturing the full value of their highest-priority initiatives. This highlights the critical need for disciplined governance, clear accountability, and realistic investment assumptions to turn savings targets into realized value. The survey also underscores the growing importance of AI-enabled automation, despite the execution challenges it presents.
What we're watching
- Execution Risk
- Whether organizations can bridge the gap between ambitious cost transformation targets and measurable results.
- AI Adoption
- How firms will address the 55% who say their current technology systems cannot support AI-enabled transformation.
- Investor Expectations
- The impact of public commitments on investor confidence, given that 76% of organizations have made or plan to make their transformation commitments public.