What CIOs Need to Know
About Cost Estimation in 2025
Trusted by leaders in the industry:
What CIOs Need to Know
Executive Summary
This report draws from a rigorously validated dataset to reveal where cost estimation is breaking down and where CIOs can make a measurable difference. Every participant was screened for relevance, and each response went through multiple quality checks to ensure reliability and practical value.
Across industries, the challenges are consistent. Most organizations still rely on spreadsheets. AI is rarely applied. Data remains siloed. Teams are under pressure to deliver, but they often lack the tools, training, and systems to succeed. As a result, planning slows, forecasts vary, and confidence erodes across the business.
These issues are not caused by lack of awareness. Many organizations recognize the value of accurate, connected estimation. Few, however, have taken meaningful steps to modernize. That gap presents a clear opportunity for CIOs. With the right architecture, governance, and data strategies, cost estimation can shift from a manual task to a strategic function.
This report highlights where the gaps are most urgent, what is driving them, and how CIOs can lead change. The insights are drawn from a cross-industry survey of 180 professionals involved in cost, schedule, and risk management. The findings show that adoption of AI and automation is lagging, integration is incomplete, and estimation accuracy remains a serious concern. CIOs are uniquely positioned to address these problems by building transparency, connecting systems, and embedding estimation into the digital foundation of the enterprise.
Findings from the 2025 CIO Estimation Report
0%
of organizations still rely on Excel for cost estimation
0%
of respondents use AI tools in their estimation processes.
0%
remain disconnected
0%
partial integration
0%
fully integrated
Integration Levels in Estimation Systems
How Confident Are Teams
in Their Estimates
0%
very confident
0%
somewhat confident
0%
say they’ve automated more than 75%.
0%
of respondents report automating just 26–50% of their project and cost estimates
Automation is
Underutilized
Why Estimation Is a Strategic Lever
Cost estimation is not a back-office task. It influences how resources are allocated, how risk is managed, and how strategies are put into action. Still, many organizations treat it as a static spreadsheet exercise rather than a core business function. This mindset leads to inconsistency, rework, and limited visibility.
CIOs can change that. They have already led digital transformation across customer experience, supply chain, and finance. Estimation is the next critical area where modern infrastructure, AI tools, and collaboration across teams can deliver stronger planning and better outcomes.
Six Trends CIOs Can’t Ignore
1. Automation and AI Adoption Remain Limited
AI is gaining traction across the enterprise, but estimation is behind. Seventy-one percent of respondents said automating repetitive estimation tasks would improve performance. Still, only 37% use AI tools in estimation today. Even fewer, just 19%, rank AI as very important to their strategy.
Manual work still dominates. Estimators consolidate spreadsheets, lookup unit costs, and generate project scenarios by hand. These are ideal candidates for AI assistance. But adoption is slow, often because estimation sits outside formal digital transformation efforts.
Where to Start:
Use AI to flag outdated rates or fill in narrative justifications
Automate template population with past estimates
Apply pattern recognition to highlight inconsistencies
Pilot Copilot-style tools for scenario documentation
CIOs don’t need to overhaul everything at once.
They need to prove value through repeatable, low risk wins.
2. Disconnected Systems Create Broken Insights
Fifty-five percent of organizations say their estimation tools are only partially integrated with core systems like ERP, procurement, or project management. This gap leads to duplicated data entry, missed updates, and delayed decisions.
Disconnected tools mean estimates are outdated before they’re approved. Material or labor rates change, but the planning model doesn’t reflect it. Teams work from mismatched assumptions, and outcomes suffer.
CIO Action:
Embed estimation into project governance systems
Establish shared data pipelines between tools
Use common data definitions to reduce manual handoffs
Estimation systems need to become part of the enterprise architecture—not a separate utility.
3. Accuracy Is Still a Blind Spot
Only 12% of respondents are very confident in the accuracy of their estimates. Another 54% are only somewhat confident. A combined 33% report being neutral, not very confident, or not confident at all. This signals an industry-wide credibility gap in estimation reliability. Inaccurate initial estimates were selected as a top challenge by 47% of respondents.
These confidence gaps are not caused by simple miscalculations. They are symptoms of larger issues such as outdated inputs, disconnected systems, and a lack of process ownership. Many teams still rely on spreadsheets and institutional knowledge, even when more effective tools are available.
Improving accuracy requires more than rechecking numbers. It takes real-time data, consistent inputs, clear version control, and shared accountability across teams. Organizations that build these foundations are more likely to trust their estimates and act on them with confidence.
How confident are you in the accuracy of your organization’s current cost estimation process?
0%
Very confident
What percentage of your organization’s project and cost estimates are automated?
0%
say 50-100% are automated
How integrated is your project and cost estimation process with other departments in your organization?
0%
Partially Integrated
CIO Opportunity:
Ensure access to current rates and validated inputs
Introduce version control and structured review
Use benchmarking tools to compare expected vs. actuals
Better inputs lead to better decisions—and better stakeholder trust.
4. Spreadsheets Are Still the Default—And That’s a Risk
Eighty-seven percent of organizations rely primarily on Excel for cost estimation. It’s familiar, flexible, and fundamentally limited.
Spreadsheets lack collaboration controls, version history, and integration. They can’t support real-time updates or scale across business units. And they often hide errors that affect planning outcomes.
Feature
Version Control
Data Integration
Forecasting
Auditability
Spreadsheets
Manual, error-prone
Isolated
Static assumptions
Low
Modern Estimation Tools
Built-in tracking
Connected to ERP/PM tools
Live scenario modeling
High, with history and roles
Modern platforms support collaboration, automation, and traceability. CIOs can lead the transition by identifying use cases where spreadsheets consistently break down.
5. Process Complexity Slows Progress
Twenty-eight percent of respondents said lack of training is the biggest barrier to better estimation. Others pointed to siloed roles, unclear ownership, and inconsistent collaboration.
Many estimation processes grew informally. Without documentation or shared workflows, teams fall back on manual processes and individual knowledge. This creates bottlenecks, rework, and slow onboarding.
What would you say is the biggest hurdle to improving your organization’s cost estimation process?
0%
Training & Skills Gaps
0%
Technology Limitations
0%
Data Quality & Availability
0%
Process Complexity
0%
Organizational Alignment & Culture
0%
Unclear or Evolving Requirements
CIO Levers for Change:
Map the estimation process and reduce handoffs
Provide role-specific training beyond tool usage
Set up estimation centers of excellence or shared playbooks
Define data sources and responsibility boundaries
Technology helps, but structure and ownership are essential to scaling maturity.
6. ESG and Regulatory Demands Are Reshaping Estimation
Estimation is no longer just about cost. Regulatory requirements and ESG goals now influence how estimates are built and evaluated. Forty-five percent of respondents said regulations significantly affect their process. Sixty-seven percent said ESG factors are now part of their estimation frameworks.
CIOs must ensure their systems can track and model variables like emissions, labor laws, and ethical sourcing. Spreadsheets are not built for this. Static templates can’t handle regional variation, carbon pricing, or evolving audit needs.
What unique challenges does your industry face in
project and cost estimation?
0%
Regulatory Environments
How important is the incorporation of ESG considerations in
your project frameworks?
0%
Important
What tools and/or software does your organization rely on for project and cost estimation?
0%
Excel
What Needs to Be Tracked:
Carbon impact by supplier or material
Emissions by project phase or geography
ESG audit and disclosure costs
Legal compliance inputs by jurisdiction
CIOs can integrate compliance, risk, and ESG data into estimation workflows, ensuring estimates reflect both financial and nonfinancial obligations.
Technology Integration & Digital Readiness
CIOs don’t need to own every estimate—but they do need to shape how estimation happens. That means leading efforts to connect, automate, and modernize the process across business functions.
Action Plan:
Pilot automation for repetitive tasks to reduce overhead
Integrate estimation data with ERP and PM platforms
Champion estimation KPIs that track accuracy, reuse, and speed
Support ESG modeling with compliant, flexible data structures
Replace spreadsheets with systems designed for auditability and collaboration
Estimation doesn’t have to be perfect, but it must be transparent, repeatable, and aligned with how modern enterprises operate.
Why This Matters for CIOs
Estimation is a reflection of how an organization plans, aligns, and executes. Right now, many estimation practices aren’t keeping up. AI is underused. Systems are fragmented. Accuracy is suspect. And too often, estimation is left out of transformation initiatives altogether.
CIOs can lead a reset; one that turns estimation from a reactive task into a proactive business capability. By modernizing tools, integrating workflows, and enforcing accountability, they can give teams better data, better decisions, and more confidence in outcomes.
When estimation works, so does execution.
This report is part of a deeper look at how cost, schedule, and risk planning are evolving. Access the full 2025 Industry Report on Cost, Schedule, and Risk to see where the biggest gaps and opportunities exist.
Access The Report