Nearly 90% of Organizations Cite Cost Unpredictability as Top Threat; Findings Expose Gaps in Forecasting and Integration and Point to AI as a Strategic Opportunity
Galorath Incorporated, the leader in AI-powered estimation and operational intelligence for the enterprise, today released its inaugural 2025 State of the Industry Report on Cost, Schedule, and Risk. Based on responses from professionals across aerospace, defense, infrastructure, government, and technology, the report identifies cost volatility as the top operational risk for 89% of organizations. As economic pressure and global uncertainty intensify, most teams remain reliant on fragmented systems, manual estimation, and disconnected workflows—conditions that limit speed, consistency, and accountability. The report highlights a widening gap between strategic priorities and on-the-ground execution, offering data-driven insight into where organizations are falling short, where investment is accelerating, and how project planning must evolve under persistent disruption.
“The past five years have tested every assumption about how projects are planned and delivered,” said Charles Orlando, chief strategy officer at Galorath. “We commissioned this report to go beyond generic market overviews and instead deliver practical, data-backed insight for project, cost, and operations professionals who face these issues daily. For years, Galorath has helped organizations confront estimation as a fragmented, under-leveraged process. This data shows the market is catching up. As AI tools multiply and complexity rises, it’s no longer just about speed; it’s about credibility. That’s the gap Galorath’s AI strategy is built to close.”
The interactive report is available now on Galorath’s website, allowing media, analysts, and other industry professionals to review the findings and market analysis and gain actionable insights based on industry, geographic region, and areas of interest.
Key Industry Findings
The report surfaces six recurring challenges affecting cost, schedule, and risk estimation across industries. These findings highlight where organizations are falling behind—and where forward-looking teams are already adapting.
- Cost Volatility Is the Defining Challenge of 2025
89% of respondents cited unpredictable shifts in labor, materials, and input costs as their top operational risk. Many organizations struggle to adjust budgets and timelines as external forces move faster than their internal tools can accommodate. While no system can eliminate uncertainty, the report suggests that scenario modeling and real-time estimation will be key to making faster, more resilient decisions under pressure. - AI Recognized as Critical, But Still Underused
Although 56% of professionals view AI-enabled estimation as essential to long-term success, 63% say they have not yet adopted it. Most cite unclear deployment paths, skills gaps, and limited internal buy-in. But momentum is growing. Many organizations have established AI assessment teams and launched pilot initiatives, with several reporting early-stage integration of tools like SEERai into real-world workflows. Still, these findings suggest that many organizations remain in a proof-of-concept phase despite growing pressure to operationalize AI for planning and execution. - Automation Gaps Are Slowing Teams Down
Less than half of respondents reported automating more than half of their estimation and planning workflows. Despite growing access to advanced tools, capability gaps remain a barrier. Many teams lack consistent training in automation, analytics, and estimation methodology. The report emphasizes that unlocking value from automation requires technology adoption and dedicated strategies for workforce enablement. - Confidence in Estimates Remains Limited
Only 12% of respondents expressed strong confidence in their cost estimates, while over half described their confidence as “moderate.” Manual inputs, legacy tools, and unclear assumptions continue to impact decision-making accuracy. Teams that have adopted predictive modeling and AI-based risk analysis report higher confidence and alignment. The findings suggest that improving both transparency and accessibility of estimation tools is essential to closing the trust gap. - Disconnected Systems Undermine Cross-Functional Planning
Just one-third of organizations said their estimation tools are fully integrated across departments. An additional 11% report operating in completely siloed environments. This fragmentation slows decision-making, complicates oversight, and increases the risk of misalignment between finance, engineering, and program teams. Integration is increasingly viewed not as an IT issue but as a strategic requirement for execution at scale. - ESG Is Becoming a Planning Input, Not Just a Reporting Output
Eighty-four percent of respondents say environmental, social, and governance (ESG) factors now influence how projects are framed—even if not yet formalized. The report suggests that as ESG priorities become embedded earlier in planning cycles, estimation frameworks must evolve to address long-term impact alongside cost and delivery expectations. Organizations that align sustainability and strategy early may be better positioned for compliance and resilience.
The findings paint a clear picture: current estimation practices are under strain. Fragmented systems, reactive workflows, and underutilized technologies are holding organizations back at a time when speed, accuracy, and accountability are more critical than ever. Yet the same challenges that expose vulnerability also signal opportunity. As organizations reassess their planning strategies for 2025 and beyond, Galorath is not simply responding to market disruption; it is helping to define how estimation must evolve. Galorath equips organizations to move faster, act confidently, and manage complexity and uncertainty without compromise by combining AI-powered tools, integrated solutions, and workforce enablement.
“This report isn’t just for our customers. It’s for any leader under pressure to make confident decisions with limited time, resources, or precedent,” Orlando added. “It doesn’t try to predict the future. It offers a starting point for intelligent planning grounded in evidence, not assumptions. But it does confirm what we’ve long anticipated: estimation must evolve from a disconnected process to a strategic, AI-enabled function.”
Methodology
The 2025 State of the Industry Report on Cost, Schedule, and Risk data and analysis are based on a structured quantitative survey conducted between January and March 2025. Respondents included a vetted sample of 200 senior and mid-level professionals—such as program managers, estimators, engineers, financial analysts, and executives—across industries where cost, schedule, and risk estimation play a strategic role. Sectors represented in the study include IT and software development, energy and utilities, healthcare and pharmaceuticals, transportation and logistics, automotive, aerospace, manufacturing, defense and military, and electronics and hardware. The survey included multiple-choice and open-response formats to capture measurable trends and contextual insights.
For more information or to access the full report, visit galorath.com/soti.
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