Only 48% of digital initiatives undertaken by enterprises meet or exceed their intended business outcomes, according to a global survey by Gartner. Conversely, the study by the management consultant company found that 71% of those CIOs and IT managers who were especially proactive in pushing digital projects forward achieved or surpassed their targets. This so-called ‘digital vanguard’ was identified in a survey of some 3,100 CIOs and technology executives, as well as 1,100 executive leaders outside IT.
“This digital vanguard distinguishes themselves from the rest of CIOs and CxOs because they co-own digital delivery,” explained Gartner research vice president Raf Gelders. “CIOs and CxOs are equally responsible, accountable and involved in delivering the digital solutions their enterprises need. This is a radical departure from the traditional paradigm of IT delivery and business ‘project sponsorship’ that predominates in most enterprises.”
CIO investment trends show a focus on emerging technologies
Gartner’s findings highlight key investment trends for 2025, showing a strong focus on emerging technologies. Among the CIOs surveyed, 87% plan to increase funding for cybersecurity measures, while the same percentage intends to boost investments in generative AI. Other notable areas where funding is expected to rise include artificial intelligence (84%), business intelligence and data analytics (82%), and cloud platforms (79%).
In contrast, 43% of CIOs plan to reduce spending on legacy infrastructure and data centre technologies. The trend towards cloud-based solutions continues as many organisations transition away from older, on-premise systems. However, 33% of CIOs indicated an increase in funding for these technologies, partly due to investments aimed at developing generative AI capabilities using on-premise resources.
The survey also revealed a gap in workforce development, as only 16% of CIOs said that they planned to build technology skills across the organisation beyond their IT departments. This limited approach may impact the overall effectiveness of digital initiatives, contributing to the low percentage of projects meeting their objectives. Furthermore, only 18% of CIOs intend to extend technology leadership responsibilities to other business units, a move considered crucial for expanding the capabilities and influence of the digital vanguard.
Top priorities for CIOs in 2025
Managing cybersecurity and technology risks remains the top priority for 69% of CIOs in 2025, according to the survey. Additionally, 59% of CIOs are focused on creating and executing IT strategies, while 50% aim to demonstrate the business value of IT and modernise enterprise applications. Other notable priorities include transforming the IT operating model (43%) and managing technology finances to optimise costs and balance risk (43%).
In a separate survey by Gartner, involving 451 senior technology leaders, 57% of CIOs reported being responsible for leading an AI strategy within their organisations. However, they face four emerging challenges that hinder the realisation of AI’s potential value. These challenges include the inconsistency in realising business benefits from AI, escalating costs associated with AI deployment, the new risks and complexities arising from widespread data and AI integration, and the dual impact of AI on employee performance and well-being.
Read more: 58% of finance functions using AI in 2024, finds Gartner survey
