Amid growing economic pressure and global uncertainty, many companies feel the strain, making this a critical moment for CIOs to take the lead and drive meaningful change. Key opportunities include enhancing cost estimation processes and streamlining operational workflows.
Cost estimation directly impacts resource allocation, risk management, and strategic execution, yet many organizations still treat it as a static spreadsheet exercise instead of a critical business function. This outdated mindset results in inconsistencies, rework, and a lack of transparency. Rather than helping organizations meet the growing demands with limited resources, this spreadsheet approach slows progress, weakens consistency, and reduces accountability, hindering agility when needed most.
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Findings from the recent 2025 Industry Report on Cost, Schedule, and Risk reveal where cost estimation is breaking down and where CIOs can make a measurable difference in their role. Across industries, the challenges are strikingly similar: spreadsheets remain the primary tool, artificial intelligence (AI) adoption is sluggish, and data remains confined within isolated systems.
The report outlines key trends, pinpointing the most urgent cost estimation gaps, their underlying causes, and how CIOs can take the lead in addressing them.
AI and Automation Adoption are Still Lagging
AI is gaining momentum across enterprises, but estimation remains a step behind. While 71% of respondents believe automating repetitive estimation tasks would boost performance, only 37% currently use AI in their estimation processes, and just 19% consider it a top strategic priority.
While AI is getting smarter and readily available, manual work still prevails, with estimators relying on spreadsheets, manual cost lookups, and hand-built scenarios. These are all tasks and workflows well suited for AI support. However, AI adoption remains slow largely because estimation is often excluded from broader digital transformation initiatives.
Where does the CIO start? CIOs can start small without overhauling everything at once. Building AI momentum starts with proving value through reliable, low-risk outcomes. Begin with small, low-risk initiatives that demonstrate the value, such as using AI to flag outdated rates, auto-fill templates, and identify inconsistencies. Experiencing the benefits and ease of use can shift team perspectives, increasing openness to AI integration.
Fragmented Systems Produce Flawed Insights
Fifty-five percent of organizations report that their estimation tools are only partially integrated with key systems such as ERP, procurement, or project management; this results in duplicated data entry, missed updates, and slower decision-making. When systems are disconnected, estimates quickly become outdated as material and labor rates change and the current planning models fail to keep up. As a result, teams operate with inconsistent assumptions, rather than dependable estimates, negatively impacting project outcomes.
What action should CIOs take? CIOs must fully integrate estimation systems into the enterprise architecture rather than treat them as standalone programs. CIOs should make estimation part of project governance, connecting all programs and systems so they share data seamlessly, and using common terms to cut down on manual handoffs.
Accuracy Gaps Remain Unaddressed
Only 12% of respondents express strong confidence in their estimates, while nearly half identify inaccurate initial estimates as a significant challenge. These numbers highlight systemic problems rather than isolated errors. Accuracy gaps frequently stem from outdated data, fragmented teams, and limited visibility into planning changes. Despite the availability of better cost estimation platforms and tools, reliance on spreadsheets and informal knowledge remains common.
What opportunity does this present for CIOs? Better accuracy requires real-time data, standardized assumptions, and clear accountability throughout the estimation process. Teams must have access to the latest rates and validated data. In addition, ensure everything is organized with version control and regular reviews, and use benchmarking tools to see how estimates stack up against actual outcomes.
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Spreadsheets Still Lead – Bringing Vulnerability
Eighty-seven percent of organizations still rely mainly on Excel for cost estimation. While spreadsheets are familiar and flexible, they have their inherent limitations. They lack collaboration controls, version tracking, and other system integration capabilities, making real-time updates and enterprise-wide scaling difficult. Additionally, hidden errors in spreadsheets can undermine the accuracy of planning outcomes.
How can CIOs encourage teams to move beyond their Excel comfort zone? Modern estimation platforms and workflows offer easy collaboration, automation, and traceability. CIOs can lead by identifying where spreadsheets often fall short and guiding their teams toward better solutions. Although spreadsheets have long been the standard, teams are more willing to embrace change once they experience the benefits firsthand.
Complex Processes Slow Down Progress
Twenty-eight percent of respondents identified insufficient training as the main obstacle to improving cost estimation. Others cited fragmented roles, unclear ownership, and poor collaboration as key challenges. Many estimation processes developed organically without formal documentation or shared workflows can lead teams to rely on manual methods and individual expertise. This results in bottlenecks, duplicated effort, and slower onboarding.
How can CIOs encourage change? To scale cost estimation maturity, organizations must go beyond the technology and focus on the people who are and will be using it. This includes mapping out processes that reduce handoffs, providing role-specific training, establishing estimation centers of excellence or shared playbooks, and clearly defining data sources and ownership. Structure and accountability are going to be key to sustainable estimation improvement.
ESG and Compliance Demands are Driving Change in Estimation
Estimation today goes beyond just cost. Regulatory requirements and ESG goals increasingly shape how estimates are created and assessed. Forty-five percent of respondents report that regulations significantly impact their process, while 67% incorporate ESG factors into their estimation frameworks. Traditional spreadsheets and static templates cannot manage regional differences, carbon pricing, or changing audit demands.
What do CIOs need to do? CIOs can enhance estimation accuracy by integrating systems capable of tracking and modeling variables such as ESG, compliance, and risk data, helping capture factors like carbon impact, emissions, audit costs, and legal requirements to ensure estimates account for financial and nonfinancial obligations.
Final Thoughts
Estimation reflects how well an organization plans, aligns, and executes, but many current practices are falling behind. Most organizations understand the importance of accurate and cohesive cost estimation tools and workflows; the issue is that few have taken concrete steps towards change, and this is precisely where CIOs have an opportunity to take the lead.
CIOs don’t need to manage every estimate themselves, but they need to lead the charge in modernizing how cost estimation is happening. That means connecting systems, automating manual tasks, and streamlining workflows across functions. With the proper infrastructure, governance, and data strategy, CIOs can shift their organizations’ focus from manual, time-consuming tasks to strategic business performance.
In today’s economic climate, adaptability must be a core IT leadership responsibility. CIOs are uniquely positioned to drive the modernization shift by embedding cost estimation into the core of digital initiatives and transformation, improving transparency, and connecting critical systems.
