The Cost of Overengineering: Lessons from the 2025 CIO Survey

Across industries and regions, overengineering has become a hidden tax on enterprise planning. It occurs when organizations add layers of complexity such as sprawling spreadsheets, repeated reviews, and heavy manual reconciliations in the belief that more detail will create more rigor. Instead of improving accuracy, these practices slow decisions, reduce transparency, and increase risk. 

The 2025 CIO report, What CIOs Need to Know About Cost Estimation in 2025, shows how widespread this problem has become. Eighty-seven percent of organizations still rely on Excel for cost estimation, a tool that was never designed for integrated, enterprise-wide planning. More than half of respondents, 56%, say their estimation systems are only partially integrated with core platforms like ERP and procurement. Another 26% remain completely disconnected, which means critical inputs are out of sync before they reach decision-makers. 

Confidence in estimation is equally troubling. Only 12% of respondents are very confident in their forecasts, while 54% describe themselves as only somewhat confident. The credibility gap persists even though 71% of organizations believe that automating repetitive estimation tasks would improve performance. Adoption has not kept up. Just 37% report using AI tools in estimation, and only 4% have automated more than 75% of their workflows. The largest share, 45%, remains in the 26 to 50 percent range, which still requires significant manual effort. 

The impact extends beyond operations. When estimation is fragmented and fragile, strategy execution suffers. Resources are misallocated, planning cycles drag, and boards are asked to approve investments based on numbers that do not inspire confidence. CIOs have already transformed customer experience, supply chain, and finance with modern systems. The same transformation is overdue in estimation. Without modernization, overengineering will continue to consume effort and capital while providing little in return. 

Why Estimation Is a Strategic Lever 

The report makes clear that estimation is not a back-office exercise. It directly influences how resources are allocated, how risks are managed, and how strategies are executed. Yet too many organizations treat estimation as a static spreadsheet task rather than a core business function. This mindset leads to inconsistency, rework, and limited visibility. 

CIOs are in a position to change that. They have already guided transformation in areas that once seemed too complex or entrenched to modernize. Estimation is the next logical step. By connecting data, embedding automation, and ensuring governance, CIOs can turn estimation from a reactive task into a strategic capability. 

Six Trends CIOs Cannot Ignore 

1. Automation and AI Adoption Remain Limited 

AI has gained traction across the enterprise, but estimation is lagging. Only 37% of organizations use AI tools for estimation today. Just 19% rank AI as very important to their strategy. The gap is striking given that 71% of respondents believe automating repetitive tasks would improve performance. 

Estimation teams continue to consolidate spreadsheets, look up unit costs, and generate scenarios manually. These are tasks that AI could support effectively. CIOs do not need to overhaul everything at once. They can start by piloting low-risk automations such as auto-populating templates or flagging outdated rates. 

2. Disconnected Systems Create Broken Insights 

Fifty-six percent of respondents report that their estimation tools are only partially integrated with core systems like ERP, procurement, or project management. Another 26% are fully disconnected. This fragmentation leads to duplicated data entry, missed updates, and delayed decisions. 

When systems do not connect, estimates are already outdated by the time they are reviewed. Teams work with mismatched assumptions, and leaders approve plans based on stale information. CIOs can address this by embedding estimation into governance systems, creating shared data pipelines, and enforcing common data definitions. 

3. Accuracy Is Still a Blind Spot 

Only 12 percent of organizations say they are very confident in the accuracy of their estimates, while 54% are somewhat confident. That leaves more than a third of respondents neutral, not very confident, or not confident at all. Inaccurate initial estimates were identified as a top challenge by 47% of respondents. 

These gaps are not caused by small errors. They are the result of outdated inputs, disconnected systems, and unclear ownership. CIOs can improve accuracy by ensuring access to current rates, implementing version control, and introducing benchmarking to compare expected versus actuals. 

4. Spreadsheets Are Still the Default 

Eighty-seven percent of organizations continue to rely on Excel for estimation. Spreadsheets may feel familiar and flexible, but they lack version control, auditability, and integration with enterprise systems. Errors remain hidden, collaboration is limited, and forecasting is based on static assumptions. 

CIOs should identify areas where spreadsheets consistently break down and replace them with systems designed for scale, collaboration, and traceability. 

5. Process Complexity Slows Progress 

Twenty-eight percent of respondents cite training and skills gaps as the top barrier to better estimation. Others point to siloed roles, unclear ownership, and inconsistent collaboration. Many estimation processes developed informally, without clear documentation or governance, and now depend on institutional knowledge. 

CIOs can reduce this drag by mapping estimation processes, setting up centers of excellence, and creating role-specific playbooks. Technology alone is not enough. Ownership and structure are critical to maturity. 

6. ESG and Regulatory Demands Are Reshaping Estimation 

Estimation is no longer just about cost. Forty-five percent of organizations say regulation significantly affects their processes, and 67% say ESG factors are now part of their estimation frameworks. CIOs must ensure their systems can model emissions, labor laws, and sourcing requirements. Spreadsheets cannot keep up with evolving disclosure and compliance needs. 

Where CIOs Can Lead Now 

CIOs do not need to own every estimate, but they do need to shape how estimation happens. That means building connected systems, reducing manual overhead, and ensuring transparency. Actionable steps include: 

• Piloting automation for repetitive tasks. 
• Integrating estimation data with ERP and project management platforms. 
• Replacing spreadsheets with governed systems that provide audit trails and version history. 
• Supporting ESG modeling with compliant and flexible data structures. 
• Establishing estimation KPIs that track accuracy, reuse, and speed.

Estimation does not need to be perfect, but it must be transparent, repeatable, and aligned with the way modern enterprises operate. CIOs are uniquely positioned to lead that change. 

Why This Matters for CIOs 

Estimation is a reflection of how an organization plans, aligns, and executes. Right now, many estimation practices are out of step with enterprise transformation. AI is underused. Systems are fragmented. Confidence is weak. Too often, estimation is left outside digital initiatives altogether. 

CIOs can change that trajectory. By embedding estimation into enterprise architecture, integrating data pipelines, and enforcing accountability, they can deliver forecasts that inspire trust at every level of the business. The survey shows that most organizations are aware of the problem but have not yet acted. For CIOs, this is the opportunity. When estimation works, execution follows. 

See the data: Read the full CIO report, What CIOs Need to Know About Cost Estimation in 2025 and explore the complete 2025 Industry Report on Cost, Schedule, and Risk. 

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