Logicalis Report: CIOs Boost AI Spending Amid Growing Governance Concerns
A survey of over 1,000 CIOs globally finds organisations racing to invest in AI faster than they can manage it — with governance, skills, and infrastructure struggling to keep pace.
5 min read
Logicalis, the global technology service provider, has released its annual CIO Report, surveying over 1,000 CIOs globally. The findings reveal a widening gap between ambition and operational readiness: organisations are accelerating AI investment at pace, while governance frameworks, internal skills, and infrastructure are lagging significantly behind.
Key Findings at a Glance
- 94% of CIOs say organisational appetite for AI is growing — yet more than half believe adoption is already moving too fast
- 89% describe their organisation's current approach to AI as "learning as we go"
- Two-thirds of CIOs do not believe they can scale AI beyond initial deployments
- 62% report compromising on governance due to limited knowledge
- 76% say unchecked AI remains a serious concern for their organisation
- Just 39% are confident their organisation actively manages AI's environmental impact
Appetite Outpacing Readiness
Driving the surge in appetite is early evidence that AI delivers. Over a third of organisations have already accelerated their AI initiatives based on positive proof-of-concept results, with the technology showing measurable impact in areas such as predictive analytics, data-driven forecasting, and enhancing the customer experience. However, those early wins have yet to translate into confidence at scale — two-thirds of CIOs do not believe they can take AI beyond initial deployments.
The most frequently cited constraint is not funding, but skills. A lack of internal technical capability is holding back AI ambitions in nearly nine out of ten organisations. Structural governance frameworks present an equally significant challenge — while most CIOs apply AI governance controls to some extent, only 44% say they fully grasp the risks of AI adoption.
"This year's report reveals a complex challenge for CIOs navigating the biggest innovation of our lifetime. Organisations are not short of ambition or appetite for AI — they are short of the frameworks, skills and confidence to deploy it at scale. The challenge right now is not whether to invest in AI, but how to build the foundations that will make that investment effective, safe and sustainable. Today's CIO is no longer just a technology operator — they are strategically coordinating risk, ensuring accountability and driving value creation throughout the entire organisation."
— Bob Bailkoski, CEO, Logicalis
Market Nervousness and Platform Dependencies
The tension between early success and scaling challenges is compounded by broader nervousness about the AI market itself. 67% of CIOs expressed concern about an "AI bubble." A further 16% say their organisations lack continuity plans should a key AI provider become unavailable — a reminder of the growing dependencies being built on these platforms and the systemic risk that entails.
The Emerging Sustainability Dimension
Layered onto these challenges is an emerging sustainability dimension that few organisations are prepared for. As AI workloads grow, so does their energy footprint. Just 39% of CIOs are highly confident their organisation actively manages AI's environmental impact, and only 41% express the same level of confidence that energy efficiency is a priority in AI deployment decisions.
Turning to Managed Service Providers
Faced with these mounting pressures, 94% of CIOs plan to lean on Managed Service Providers over the next two to three years to help navigate AI governance, scaling, and sustainability challenges. This marks a fundamental shift in the CIO's relationship with technology — from direct ownership to orchestration — as the pace of AI demands a depth of expertise most organisations cannot build internally at speed.
The full report is available at logicalis.com/cio-report.
Key Takeaways
- 94% of CIOs report growing organisational appetite for AI, but 89% describe their approach as "learning as we go"
- The biggest constraint on AI ambition is skills, not funding — nearly nine in ten organisations cite a lack of internal technical capability
- 62% of CIOs have compromised on governance due to limited knowledge, and 76% say unchecked AI remains a serious concern
- 67% are worried about an AI bubble, while 16% have no continuity plans if a key AI provider becomes unavailable
- 94% of CIOs plan to rely on Managed Service Providers over the next 2–3 years to address AI governance, scaling, and sustainability