How to Know If New Software Is Worth the Cost
Buying new software requires more than checking its features. Before requesting a budget, consider the total cost, who will manage the software, and how the business will measure its return on investment
A team finds software that could make its work easier. The features look good, and the team wants to buy it. But the CFO has to consider the cost and whether the company will get enough value from it.
A June 2026 KPMG study surveyed 2,154 leaders worldwide about AI spending. Only 7% said they could demonstrate profit from their overall AI investments. The finding raises a practical concern for companies buying new technology: how can they tell whether the money spent is paying off?
Where is the money getting spent?
Software costs can build up through overlapping tools, premium plans, and subscriptions that teams no longer use regularly. An article published by Eliassen states that after a survey of 141 tech company bosses, 54% of them have already cut down the number of software companies they pay. And 45% of them even said that the money for AI is coming from their own existing software and not from the new money they are generating. A new tool must justify its cost or offer enough value to replace software the company already pays for.
Why is saving time not enough anymore?
A marketing team might ask for new software because it promises to save time. But saving time alone may not be enough to get the CFO’s approval. With so many tools available, the company needs to know whether the time saved justifies the cost. That means looking beyond what the software promises and working out what the business will actually gain from it.
Questions to be ready for
The earlier study from KPMG also found that companies that could exactly see what their AI costs to actually run were five times more likely to say that the tools paid off. The study also found that companies where the CFO takes responsibility for the decisions made with AI made leaders more confident in their AI plan. So before going ahead and asking for software, you should be ready to answer three questions:
- What will the total cost be, including setup, training, and ongoing fees?
- Who will be responsible for it?
- How will we know the ROI?
Before You Request a Software Budget
So, before asking for money for software, ask yourself whether the investment will be worth the time, or you will only have time saved with no ROI. The people who care about the software talk about what it can do, and the ones who pay for it can think about what it costs and what it brings back. This is where the request for the money usually gets stuck between those two conversations, and the team only finds out when the answer comes back as no.
About Mansi Avhad
Mansi Avhad leads editorial content with a focus on SEO-driven writing that aligns user intent with clear, simple communication. She excels at simplifying complex topics into meaningful narratives. She believes good content should be simple, intuitive, and genuinely helpful.
