Recent Foundry studies have shown that AI is rapidly becoming the primary interface for buyers evaluating tech purchases. This has implications not only for buyer behavior, but also for how vendors position, surface, and validate their offerings. 

The good news is that the transition isn’t taking place overnight. AI platforms accounted for just .15% of global internet traffic in 2025, compared to 48.5% from organic search, . But AI traffic is growing fast and could pull even with search engines by 2029, according to some estimates. 

The reason is simple: Recommendations from AI engines convert at a four to five times higher rate than search results, .  

Top of the funnel 

Foundry research shows that AI has inserted itself at the very top of the discovery funnel. The 2026 AI Priorities study found that 99% of IT decision-makers currently use AI in the tech buying process, with the top use cases being to compare solutions and features (48%) and define technical requirements (47%).  

This shift has come at the expense of more traditional comparative tools such as analyst reports, peer networks, and events. For example, the use of product demos and pilot testing in evaluation dropped by half from 66% to 33% in just one year. While still important, the role of established evaluation channels is shifting later in the buying process.  

These results point to a bigger trend: reduced time devoted to purchasing research. Historically, enterprise technology buying followed a staged progression, such as initial awareness through search or events, shortlist development supported by analyst and peer input, and validation through demos and proofs of concept.  

AI collapses much of that sequence into a single interaction. Large language models excel at synthesizing data from multiple sources into a single recommendation. Evaluation sources such as product reviews, blog posts, and social network comments are consolidated and delivered without buyers having to consult each source. 

Instead of navigating a fragmented information landscape, buyers are delegating synthesis to AI systems that deliver a single narrative. Vendor consideration sets are being shaped earlier and with less direct vendor interaction. 

For marketers, the first impression increasingly happens inside an AI-generated summary rather than on a website, event, or in a sales conversation.  

Trust factor 

Fortunately, survey results indicate buyers aren’t inclined to take AI recommendations at face value, at least not yet. When an LLM produces a recommendation or shortlist, buyers triangulate with other sources. The AI Priorities study found that 53% cross-check with analyst or editorial content, 47% visit vendor websites, and 43% consult peers. Those figures are consistent with pre-AI behaviors. Traditional sources haven’t disappeared; they’ve become a confirmation step rather than a primary discovery mechanism. 

Notably, more than half of respondents to the AI Priorities study said they place only “moderate trust” in LLM outputs, while about one-third express high trust. The technology is moving quickly, however, and improvements in LLM output are likely to boost trust scores over time.  

For vendors, the new priorities are to achieve visibility into AI outputs and consistency across the external sources buyers use to verify them. 

Visibility in AI engines depends on how well a vendor’s information is represented across the range of sources that AI systems ingest and synthesize. While traditional techniques for achieving search visibility, such as optimizing for indexed pages and keyword queries, are still valid, AI optimization differs in several key ways.  

AI outputs are less forgiving. Instead of presenting a list of results, they provide a single synthesized answer unless asked otherwise. Vendors that don’t appear in that result are effectively invisible.  

Search engines match queries to keywords and backlinks. LLMs interpret intent and generate answers based on semantic relationships. This means vendor-generated content must clearly articulate use cases, differentiation, and outcomes in natural language, not just targeted keywords. 

AI models draw from a wide range of sources, including analyst reports, editorial coverage, reviews, and community discussions. Credibility is determined by consistency across the ecosystem, not just messaging on a vendor’s website. This makes third-party sources a more critical validation element. Bylined articles, videotaped interviews, and positive media coverage are more important than ever. The objective shifts from attracting traffic to influencing how the category and vendor are described within the answer to a prompt. 

There’s good news in the research for new companies, in particular. The AI Priorities study found that 65% of organizations now have dedicated AI budgets, up from 36% just two years ago. It also found that three-quarters of organizations expect to add new vendors to their portfolios. With many new entrants coming on the market, this suggests that the vendor landscape is becoming more dynamic and fluid, offering greater opportunities for new companies to gain visibility.  

Here’s what marketers can do to boost their AI visibility in the short term. 

• Structure content for comprehension, not just indexing. Clearly articulate capabilities, use cases, and differentiation points to increase the likelihood that AI systems will understand and accurately portray them.  

• Create structured, machine-readable content using tools such as schema markup and product definitions. Map relationships between the company, product, and use case. FAQs are an excellent tool. 

• Double down on third-party validation. Analyst coverage, independent reviews, and editorial mentions are not just credibility signals for humans but also source material for AI synthesis and later validation.  

• Use consistent naming across channels and encourage partners and influencers to do the same. Discrepancies between vendor messaging and external descriptions can reduce the chance of inclusion in AI-generated summaries. 

• Promote experts. AI engines look for proof that the people who build products have the skills to solve the problems customers ask about.  

Think of AI engines as proxies for human researchers. Technical factors like metatags, keyword frequency, and keyword proximity are less important than demonstrated expertise and third-party validation. 

Visibility is no longer just about being found. It’s about being understood.  

Molly doesn’t hear much from IT vendors, but she doesn’t think she needs to. She gets much of her advice from influencers she follows on Tik-Tok and Instagram. She also follows several IT vendors on those platforms and likes to share the offbeat and entertaining videos they post.

Molly is part of Generation Z, people born between 1997 and 2012. Gen Z workers comprised about 18% of the U.S. labor force in 2024 and are now a larger population than Baby Boomers, . They’ll make up 30% of the U.S. workforce by 2030, . Gen Z was just 6% of respondents to Foundry’s 2023 Role & Influence study, but 15% in 2025.

This is a cohort to be reckoned with. Foundry has been tracking preferences by age group in IT marketing research for several years. An analysis of three years of recent studies reveals that engagement strategies must emphasize speed, new channels, concise content, and emotional tone.

Time is of the essence

Gen Z IT decision-makers move fast and expect vendors to do the same. In the 2024 Role & Influence Study, the group pegged the average buying process at 5.1 months, compared to 6.5 months for Boomers. They were also nearly twice as likely as other generations to say decisions take less than a month.

Younger buyers have less tolerance for delay. On average, they expect vendors to follow up on inquiries within 9.6 hours of submitting a request, according to the 2026 Customer Engagement research. That’s six hours faster than Generation X buyers (born between 1965 and 1980), and more than three hours faster than all surveyed buyers.

Interestingly, Gen Z is less concerned about marketing hype; just 19% cite it as a problem compared to 42% of Boomers, according to the 2026 Customer Engagement study. However, they are nearly twice as critical of content overload (32% versus 17%). Having grown up in a media-saturated environment, these younger folks are less impressed by volume than relevance.

Social savvy

Social media has been around since the oldest Gen Z buyers were in elementary school, so it’s not surprising that they rely on those channels for a wide range of information. But their preferences differ markedly from those of their older colleagues.

LinkedIn is broadly important across generations, but its core strength is with older groups. More than 80% of Boomers and Gen Xers consider LinkedIn valuable, compared to only 45% of Gen Z.

Younger buyers lean far more heavily into visual and short-form platforms. According to the 2024 Customer Engagement research:

• 71% of Gen Zers use Instagram compared to 20% of Boomers
• 56% use TikTok versus 7% of Gen Xers
• 93% use YouTube versus 50% of Boomers

Social media is more than a branding channel for this audience. It’s also an essential research tool. While only 5% of Boomers identified social media as a top-three information source for buying decisions, that figure was 33% among Gen Z.

The 2026 Customer Engagement study also found that the youngest buyers are less likely to visit vendor websites, more likely to sign up for newsletters, and even more inclined to purchase through social ads. They also favor AI-powered search experiences and data visualizations more than their older peers, while showing less interest in long-form content like white papers.

Three-quarters of Gen Zers listened to business-related podcasts in the past year, with a strong preference for on-demand formats over scheduled events. They are less likely to watch webcasts, meaning that thought leadership delivered via audio and short-form video can outperform traditional webinars with this group.

Share nicely

Gen Z respondents are more than twice as likely as Gen Xers and Baby Boomers to share content that evokes an emotional reaction, the 2025 Customer Engagement study found. They’re also three times more likely to share entertaining content than Boomers.

Trust and peer recommendations remain central, though. IT decision-makers of all ages are willing to share vendor information as long as they find it valuable. Enabling that sharing through compelling, easily distributable content can extend reach organically.

Purchasing is a collaborative process, and younger buyers prefer to have more voices involved. The average buying committee at the largest companies is 32 people, but in the 2024 Role & Influence study, Gen Zers told us an average of 37 people influence decisions at their companies. Boomers estimated the number at just 16.

This seems odd, given that many of these people work at the same companies. A possible reason: The younger cohort prefers to see more people involved, even if many don’t actually play a direct role in decisions.

Bottom Lines

Here are a few action items we believe marketers should take away from this research.

• Provide materials that are easy to forward internally. Make web and social content easily shareable.
• Provide concise summaries of long-form material.
• Equip your salesforce to respond to inquiries in hours instead of days.
• Hire or designate social media-savvy marketers, particularly those who are fluent in video.
• Emotional authenticity matters. Look for case studies and spokespeople who come across as genuine and trustworthy.
• Invest in native storytelling rather than repackaged advertising
• Enable peer validation and commentary through online communities and events such as videoconferences.

As Gen Z buyers grow in numbers and influence, marketing organizations should optimize for speed, informational value, and authenticity. Building credibility with this rising generation is essential. Relying on legacy playbooks is a ticket to irrelevance.

Key takeaways:

• Relevant and consistent content is essential – 75% are more likely to consider an IT vendor who educates them through each stage of the decision process. 

• IT decision-makers are still challenged to find high-quality content, with the main reasons being too much marketing hype/buzzwords and lack of truly independent, unbiased information. Uncertainty if content is produced by a product expert or if it is AI generated does not top the list, likely because ITDMs are familiar with what AI is capable of doing.  

• Product testing/reviews/opinions, technology news articles, and product demos continue to be the top relied upon content types throughout the tech purchase process. Presentation of content is also important, as 76% of ITDMs say that they are more likely to engage with a variety of content if it is presented in an organized experience.  

• Vendors have a higher chance of gaining customers or receiving a response to outreach by understanding the importance of trust and brand reputation. More than three quarters of ITDMs say that they are more willing to exchange contact details with a company that they already have a relationship with.

• The number one rule in tech advertising – provide value. The majority (95%) of ITDMs have engaged with online advertisements, with addressing current needs, challenges or business objectives, or educated them about a technology or an important issue, increasing the likelihood of engagement.  

• Don’t miss the window – the average amount of time ITDMs think is an acceptable timeframe to receive sales follow-up after requesting information has expedited – 13 hours on average. This decreases to 9.6 hours for Gen Z and is 11.4 hours for Millennials. 

The findings and trends in this report solidify the need that tech buyers have for consistent, valuable and trustworthy content. These individuals are tasked with researching, evaluating, and implementing new technologies while shifting organizational processes and require the appropriate educational resources and relationships to do so. 

View the sample slides below for additional insight and to better understand and engage with tech buyers.

Additional buyer’s journey resources

Research blog

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Foundry’s 12th annual was conducted among the audience of 676 IT and business decision-makers. Foundry conducted this survey online throughout December 2025 to better understand the various types and volume of content consumed throughout the purchase process for major technology products and services. It also looks to gain insight into the preferences of IT decision-makers regarding IT vendor contact and follow-up during the purchase process. All respondents had IT or management titles, with 35% based in North America, 42% in Asia/ Pacific (APAC) regions, and 22% from Europe/Middle East/Africa (EMEA).

Contact us to explore the results by company size, region, generation, and more differences.  

the white paper to get deeper insight into:

• The average timeframe ITDMs expect to be followed up with after filling out a form to learn more about a tech solution.
• How ITDMs value product testing and the formats that prove the best.
• When ITDMs respond to vendor outreach and the steps tech vendors should take to ensure communication.
• The content types and information topics of most interest when ITDMs are researching new solutions.
• Key takeaways from the research for each region (EMEA vs. APAC vs. North America)

According to Foundry’s Customer Engagement research, 81% say it’s difficult to find high-quality content from vendors when evaluating major technology solutions. The problem isn’t access. It’s noise. In an environment defined by content overload, marketing hype, and growing skepticism, engagement now hinges on something far more fundamental: value, trust, and clarity.

Here are eight research-backed strategies tech marketers can use to connect more effectively with today’s tech buyers.

1. Focus on organizing the experience

Buyers rarely rely on a single piece of content. They move across formats and channels as they research solutions, making structure increasingly important. A striking 76% of IT decision-makers say they’re more likely to engage with multiple pieces of content when those assets are presented as part of an organized experience.

Disconnected white papers, blogs, and videos create friction. Structured journeys create momentum. Organization has become a competitive advantage.

Luckily, designed for dynamic storytelling, Foundry’s BrandPage solution allows audiences to engage with your brand in an immersive and interactive experience. Click here to learn more!

2. Stop fearing the registration form

The myth that buyers refuse to share information simply doesn’t hold up. An overwhelming 95% of IT decision-makers are willing to exchange their contact details for valuable content. At large organizations, that figure climbs even higher. The deciding factor is not the form. It’s the perceived payoff.

Buyers most readily register for:

• Product demos
• Product testing and reviews
• Technology news articles
• Third-party research

These preferences suggest buyers are actively seeking materials that help them evaluate, validate, and contextualize decisions rather than simply learn about vendor capabilities.

3. Treat follow-up speed as part of the experience

Buyer patience continues to shrink. Today’s acceptable follow-up window averages just 13 hours, with younger buyers expecting even faster responses.

This shift reframes follow-up from a purely operational metric to an experience metric. Timely responses reinforce credibility, while delayed engagement can subtly erode trust before meaningful conversations even begin.

4. Create content that travels inside organizations

Peer influence remains one of the most powerful forces in enterprise buying decisions.

Buyers are far more likely to share vendor content when:

• They’ve had a strong customer experience
• The vendor provides practical “how-to” guidance
• The information is timely and relevant

Useful content becomes internal currency.

5. Make outreach feel informed, not generic

Buyers are not disengaged. They’re selective.

Engagement increases when vendors:

• Share genuinely valuable information
• Demonstrate understanding of business challenges
• Communicate with honesty and transparency

Aggressive sales tactics erode trust. Relevance builds it.

6. Recognize that events are decision accelerators

Events play a far more strategic role than simple awareness building.

A notable 71% of buyers say attending industry or job-related events shortens and simplifies the purchase process.

Among all event features, product demos deliver the greatest impact.

Events compress evaluation cycles.

7. Treat virtual engagement as essential, not secondary

An impressive 95% of IT decision-makers attend webinars or webcasts related to enterprise IT solutions.

Within these sessions, case studies consistently rank as the most valuable feature.

Virtual events are not substitutes. They are core channels.

8. Respect attention spans

Even highly engaged buyers have limits.

The preferred webinar length now averages just 37.6 minutes. Longer sessions often dilute impact rather than deepen engagement.

Concise sessions signal clarity.

A lot has stayed the same, but a lot is changing. Quantum computing has risen to the top of the most researched technology list and ways in which AI/ML tools are used is rapidly evolving.

Click on the image below to see the tech buying trends from 2025 vs. 2026.

The 2025 CIO Tech Poll: Tech Priorities research is based on 269 IT decision-maker respondents. This research is conducted to gauge which technology areas IT leaders are focused on over the next 12 months and measures the direction of spending within those categories. The study is global with 59% of respondents in North America, 21% in APAC and 20% in EMEA. To learn more about this year’s research, explore key takeaways from the study below:

Key takeaways:

IT decision-makers expect steady technology growth over the next 12 months. Areas that will see the most increase in spending include AI-enabled technology (71%), cybersecurity (60%), data analytics frameworks (57%), customer experience technology (53%), and BI/Analytics tools (51%). Budget growth also aims to support IT organization areas of improvement. 

Eighty percent of ITDMs say they are already using cybersecurity technology, and only 16% are still in the research or piloting stages. Another two thirds (67%) of ITDMs say they are already using AI-enabled technology, with 28% in the research or piloting stages. Looking into which specific AI tools ITDMs are actively researching, the top are Agentic AI, AI PCs, Large Language models (LLMs) – Private) and AI-optimized servers. 

While still largely in the researching or piloting stages, ITDMs anticipate increasing their spending towards AI-enabled technology (71%) over the next 12 months, as they feel it is the single most important IT project they are currently working on and that it has the most potential to significantly alter the way their business operates over the next three to five years (58%). More specifically, ITDMs anticipate their organization will use AI/ML tools to transform the business in the next three to five years for improving decision-making through predictive or real-time analytics, risk management/fraud detection, process automation and efficiency, and enhancing the customer experience.

When buying and deploying new technologies over the past 12 months, the biggest challenges IT decision-makers encountered were security concerns, lack of appropriate skillsets for deployment, inability to integrate with existing tools, insufficient training capabilities, and lack of budget.

To date, AI projects were managed like most high-profile IT initiatives, with PPG’s CIO balancing both business strategy and technology implementation responsibilities. But the frenzy over Generative AI’s ability to democratize a powerful technology has raised the stakes, adding another dimension to the CIO’s already expansive charter. Today, CIO Bhaskar Ramachandran devotes significant time to educating PPG business leaders on the basics of Large Language Models (LLMs) while managing expectations for exactly how and where GenAI technologies have potential to transform business.

“I didn’t spend much time educating people on an ERP system—they understood it was a system for managing processes whether planning or financial,” explains Ramachandran, also PPG vice president. “But that’s not the case with AI. We’re not talking about a process or a technology that just makes something faster or cheaper. We’re talking about what business might look like while a technology is still immature.”

Despite soaring expectations, AI experience and maturity levels remain at ground level, leaving enterprises hungry for leadership that can set expectations and help cut through the noise. CIOs, who established their stripes as technology-centric business strategists during the pandemic period, are once again commanding the spotlight as companies try to nail down roadmaps and strategies to capitalize on what many are heralding as a make or break AI moment.  

According to the 2025 State of the CIO research, which canvassed 906 IT leaders and 250 line of business (LOB) professionals, IT leaders are dialing up a strategic focus this year as they work to parlay the early rush of AI experimentation into enterprise initiatives that produce measurable results. Forty-one percent of IT leaders responding to the 2025 survey characterized their role as strategic, six points higher than the 35% claiming that mantle in 2024. Looking out on a three-to-five-year horizon, more than half (52%) of respondents expect to sustain a strategic orientation with 32% back to focusing on transformational activities and only 16% mired in traditional functional IT duties.

In an era where technology is inextricable from the business, it’s no surprise that CIOs are among the top leaders steering AI’s course. 

“In the 1990s, no one questioned whether the CFO role was strategic, and by 2020, no one should have similar questions about the CIO role.”

Bhaskar Ramachandran, Vice President and CIO at PPG

CIO’s strategic AI charter 

CIOs are covering the bases as part of their strategic AI charter. Three quarters of respondents to this year’s 2025 State of the CIO research confirmed the CIO is collaborating closely with line of business on AI applications while 71% said the IT department is driving AI adoption in tandem with their business unit counterparts, aligning strategies accordingly.  

Three quarters of IT leaders expect to become more involved with AI and machine learning over the next year, and for good reason. The CEO’s top priority for IT leaders in 2025 is researching and implementing AI products and projects, cited by 26% of respondents. Last year, the AI agenda was not among the top CEO mandates for CIOs—the directives were to lead digital business and digital transformation initiatives, fortify IT and business collaboration, and focus on security to reduce corporate risk. 

CIOs are directing AI investments as part of their AI agenda. Eighty percent of IT leaders and three quarters of LOB respondents confirmed that CIOs are spearheading efforts to research and evaluate possible AI additions to the tech stack. Technology and business leadership is pretty aligned on where to direct those AI technology investments and what initiatives to prioritize. The 2025 State of the CIO found 68% of IT leaders and 69% of LOB respondents in sync on Generative AI adoption strategies and use cases.  

Currently, the bulk of AI activity is happening on the inside, aimed at helping companies reimagine their internal business processes. Sixty-nine percent of IT leader respondents to the 2025 State of the CIO survey said AI is being leveraged to automate internal processes to streamline operations and create efficiencies while 62% are embracing AI for customer-facing applications. Whether focused inside or out, the surge of AI activity is already having an impact. More than two-thirds (68%) of this year’s IT leader respondents contend that AI has or is beginning to reshape operations and drive tangible business outcomes. 

That’s certainly the case at Tractor Supply Company, where AI has played a role for years, helping to forecast sales and merchandising needs and optimize replenishment of goods. More recently, Tractor Supply has paired GenAI capabilities with headsets to create Hey GURA, a knowledge base, sales, and training platform for employees that serves up product specs, customer recommendations, and other relevant information so they can better assist customers on the floor. Tractor Supply is also applying LLMs to drive insights into team member performance and real-time sales analysis and is starting work on Agentic AI applications to bring automation to core processes like updating and publishing content for new SKUs, according to Rob Mills, executive vice president and chief technology, digital, and corporate strategy officer for the firm. 

Given the weight of AI’s impact, Mills views being an advocate and champion for the technology as a major focus of his role going forward. He is committed to acclimating both business leaders and frontline employees to new AI technologies, emphasizing the importance for all employees to understand potential opportunities. “Team members hear about AI, but they don’t necessarily know what it means for them,” he explains. “It’s my responsibility to make sure they understand why they should care about AI and how it will make their job easier and more accurate. We’re not leading with technology first—we are leading with the business need and showing how we can leverage emerging technologies to ultimately get things done efficient and faster.”

IT investments take aim at revenue growth, customer experience 

While AI is the headliner this year, CIOs are immersed in other strategic business initiatives aimed at boosting revenue growth and improving customer experience. According to the 2025 State of the CIO survey, monetizing company data was the top business imperative for 38% of respondents followed by improving customer experience (35%) and developing new digital revenue streams (32%).  

Companies are leveraging data and analytics to analyze customer needs and behaviors, cited by 43% of this year’s respondents. AI/ML and automation are another major enabler, with 41% tapping the technologies to streamline support and customer service interactions, the 2025 research found. 

Webster Bank has taken a very deliberate approach to acquisitions these last few years as part of a business strategy to grow and diversify deposits. The bank is investing in technology companies and digital products that will streamline banking services for customers and build out a suite of diversified deposit products. Given the strategic nature of the acquisitions, CIO Vikram Nafde has been at the forefront, accessing potential candidates to see if they are the right fit, evaluating the technology stack, as well as spearheading work to address potential integration challenges. 

“As opposed to acquiring branches and physical assets, we are acquiring technology-enabled companies, and CIOs play a huge role,” explains Nafde, also an executive vice president at Webster Bank.

“CIOs are uniquely positioned to not only understand the moment and what technology can do for the company, they can also lead the charge in terms of finetuning strategy and educating the board.” 

Vikram Nafde, Executive Vice President and CIO at Webster Bank

Like Nafde, State of the CIO respondents continue to report a highly digital and innovation-focused CIO charter, cited by 82% of IT respondents and 76% of LOB participants. Eighty-two percent of respondents confirmed CIOs are taking the lead on digital transformation initiatives, more so than their business counterparts. In roughly a quarter of companies (26%), the CIO holds sole responsibility for all digital transformation decisions and initiatives. At 29% of responding companies, ownership of the digital transformation agenda is distributed among all leaders. 

Much like last year, IT budgets are holding strong despite global economic uncertainties. Budget increases were on the docket for 65% of this year’s respondents with roughly a quarter (24%) anticipating funding to remain the same. On average, respondents expect to see a 6.89% bump in IT spending in 2025, primarily driven by the need for additional investments in AI/ML projects, products, and services. 

In fact, AI/ML was the most high-profile area of technology investment this year, at 42%. Outside of AI/ML, companies were directing IT budgets to security and risk management technologies (34%) and data/business analytics (31%).  

Pacific Northwest National Laboratory (PNNL)’s AI journey is all about reimagining the “art of the possible,” including how the technology can streamline and uplevel the software development process, according to Brian Abrahamson, associate laboratory director and chief digital officer for computing and IT. The team is leveraging AI to help write user stories and generate code. It’s also using AI to develop synthetic data to drive testing and user documentation. “We are retooling and reskilling in software development so we can create more capacity to apply AI,” Abrahamson says. “It’s not just AI-assisted coding, but to the left and the right of the Software Development Lifecyle (SDLC).” 

On Abrahamson’s watch, PNNL is also continuing to modernize IT architecture and infrastructure in the cloud and make on-going investments in cybersecurity technology. Many 2025 State of the CIO respondents are in the same place. CIOs are spending time mapping out modernization strategies for infrastructure and applications (32%), ensuring IT initiatives are aligned with key business goals (31%), and redesigning business processes (26%). Leading change efforts was also part of the territory, cited by a quarter of respondents. 

Strategy work consumed a fair amount of time CIOs’ time this year, including driving business innovation (27%), developing and refining business strategy (27%), and studying market trends and customer needs to identify and flesh out new market opportunities (22%). While respondents expect to devote even more time to business strategy over the next few years, critical functional duties like security management will need to remain a high priority. According to the survey results, over the next year, CIOs will spend more time on AI/ML related initiatives, at 75%, followed by cybersecurity (65%), product development and innovation (56%), and data analysis (56%).  

Cybersecurity, talent gaps remain critical challenges 

Despite investments in state-of-the-art tools and efforts to mature their cybersecurity posture, CIOs continue to cite cybersecurity as their No. 1 challenge. In fact, addressing changing business conditions (43%) and mitigating security threats (33%) took up a good portion of the CIO agenda, commanding time that could be devoted to higher-value activities. 

An increasingly sophisticated threat landscape, bolstered by bad actors’ use of AI, keeps cybersecurity a perennial moving target. In light of those complexities, it’s essential CIOs promote strong cyber hygiene, formalize governance, ensure disaster recovery practices are in place, and do whatever else it takes to ensure the organization is ready. “The one thing that keeps me up at night is cybersecurity,” says PPG’s Ramachandran. “There are so many unknowns, and we operate in so many countries—that’s the challenge.” 

Beyond staying on top of cybersecurity, attracting and retaining the right talent remains an on-going struggle for CIOs to grapple with. More than half of this year’s respondents (54%) said dealing with staffing and talent matters took time away from more strategic innovation pursuits.  

Given the AI-dominant agenda, organizations are ramping up hires versed in AI and machine learning skill sets, cited by 36% of this year’s respondents. Building out a talent bench flush with cybersecurity expertise (34%) and business/IT automation (25%) prowess is also part of the next six-to-12 month hiring plan, respondents said. While there are clearly-defined skill set needs, 2025 State of the CIO respondents anticipate difficulties finding the right talent. Specifically, 38% of respondents said they expect trouble sourcing candidates versed in AI/ML (38%), cybersecurity (33%), and data science/analytics (21%). 

In addition to the fundamentals, including cybersecurity and modern tech stack expertise, IT must develop a basic business orientation among staffers to ensure the organization can continue to create value. Cultivating individuals who have an understanding and can speak the languages of both business and technology help establish the credibility IT organizations need going forward. 

At Cummins Inc., one of the main priorities for 2025 is ensuring the IT organization is stacked with right complement of skills, for today and for the future, according to Earl Newsome, vice president and CIO for the $30 billion global manufacturer of diesel and alternative fuel engines, generators, and power systems. “We are focused on futureproofing the IT organization so we can win today and get our fair share in the future,” says Newsome. “That means understanding what AI and analytics skills we need, building the right skills to be a product owner, and developing UX and customer experience capabilities for the products we create.” 

CIO outlook: Rising to meet new challenges 

As companies reevaluate and reimagine business strategy for AI, the CIO role continues to gain ground. Three quarters of IT and 69% of LOB respondents said the combination of economic factors and growing enterprise visibility continue to elevate the CIO role. With their stature on the rise, CIOs are also getting more comfortable with multi-title roles and non-technology responsibilities. On average, CIOs are fielding 1.8 positions, and the vast majority of CIOs (77%) have successfully cultivated a strong educational partnership with the CEO and board of directors.   

CIOs are also actively embracing a changemaker role with 81% championing both business and technology initiatives, many tied to strategic use of AI. Given the requirement to focus on both business strategy and technology implementation, more than three quarters of this year’s respondents (76%) say that striking the right balance between business innovation and operational excellence remains an on-going challenge. 

With the stakes of this AI era so high, IT leaders are bound to get caught up in the hype and enthusiasm as they evaluate new opportunities and navigate the still unfolding landscape. Managing expectations both up and down all layers of the organization will be essential for maximizing strategic use of AI.  

“Everyone is scrambling now with how to transform the business, but it’s still a multi-year journey that won’t happen overnight,” cautions PNNL’s Abrahamson. “Poorly managed expectations will lead to disillusionment and frustration. While CIOs will want to invest in AI, it can’t become such a distraction that they lose focus on the fundamentals of IT and managing the business.”