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State of the CIO Survey 2025: Key Findings on AI, Budgets and Business Priorities

Foundry’s 2025 CIO survey found AI at the top of technology priorities, alongside business growth, security, operational demands and hiring challenges.
From TheFinanceBase Team4 min to read
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Foundry’s 2025 State of the CIO Survey found that IT leaders were being asked to make technology a driver of business change—especially through AI—while still protecting operations, security and talent capacity. The results are a snapshot of what respondents reported and expected in 2025, not a measure of actual spending or a forecast for 2026.

What the 2025 State of the CIO Survey found

CIO.com described the 2025 edition as the survey’s 24th annual research. Its reported sample included 906 IT leaders and 250 line-of-business (LOB) professionals. The findings below reflect those respondents; the available source material does not establish that the results represent every CIO or organization.

The broad theme was a more strategic CIO role, with AI and business growth high on the agenda. But strategic ambitions sat alongside day-to-day operational demands, cybersecurity responsibilities and difficulty hiring for specialized skills.

How CIOs described their role

In Foundry’s survey, 41% of IT leader respondents described their role as strategic, up from 35% in 2024. Another 52% expected that strategic orientation to continue over the next three to five years. The shift did not mean the operational side had disappeared: 81% viewed their role as that of a change-maker, while 76% said balancing business innovation with operational excellence was difficult.

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The figures suggest a dual mandate rather than a simple transition from technology management to strategy. CIOs were expected to connect technology choices to business outcomes while keeping core systems and services dependable.

AI and other technology investment priorities

AI and machine learning (AI/ML) led the technology investment agenda: 42% of respondents identified it as a leading investment area, and 45% called AI/ML investments strategically important. Security and risk management (34%) and data and business analytics (31%) were also leading technology investment areas.

These figures describe respondents’ investment priorities, not completed purchases or evidence that the investments generated returns. The survey’s reported priorities place AI alongside, rather than in place of, security and the data capabilities needed to support business decisions.

Business initiatives behind the technology agenda

Respondents identified several business initiatives that help explain why technology spending was receiving attention. The survey reported the following shares for leading initiatives:

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Business initiative Share of respondents
Monetizing company data 38%
Meeting compliance requirements 35%
Improving customer experience 35%
Developing new digital revenue streams 32%

These priorities span both growth and governance. Data monetization and digital revenue point toward new commercial opportunities, while compliance and customer experience keep risk and service quality in view.

Where organizations reported using AI

AI use was not limited to customer-facing products. Foundry’s survey reported that 69% were using AI for internal process automation and 62% for customer-facing applications. Separately, 68% of IT leaders said AI had already begun or was beginning to reshape operations.

Those adoption responses show where organizations said they were applying AI; they do not establish measured productivity gains, revenue growth or other business impact. CIO.com’s feature includes an executive perspective from Tractor Supply’s Rob Mills: “Our job is to think about technology and introduce technology, but we’re really here to solve business challenges,” he said. Mills added that organizations should train people to use AI to solve business problems, rather than create something new simply for its own sake. This is an individual executive’s view, not a survey result.

What respondents expected for IT budgets in 2025

Budget figures in the survey are expectations for 2025, not actual year-end spending. Sixty-five percent of respondents anticipated an increase in IT funding, about 24% expected funding to remain the same, and the average planned increase in IT spending was 6.9%.

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The positive outlook is best read as planned budget direction at the time of the survey. It should not be presented as proof that budgets rose by those amounts or as a current forecast for 2026.

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Hiring plans and talent constraints

Planned hiring reflected the same capabilities that featured in investment priorities. IT leaders reported plans to increase hiring in AI/ML (36%), cybersecurity (34%) and business/IT automation (25%). At the same time, respondents anticipated hiring difficulty in AI/ML (38%), cybersecurity (33%) and data science/analytics (21%).

Talent constraints could limit how much strategic work gets done: 54% of IT leaders said talent issues affected their ability to focus on strategic and innovation objectives. Oshkosh Corp. CIO Anupam Khare described the related challenge as preserving people who understand both business and technology, while maintaining a modern technology stack and strong cybersecurity. That observation is an executive example, not a measured result for all respondents.

How to interpret the survey

The State of the CIO Survey is useful for understanding the priorities and expectations reported by its participants, but its percentages should not be mistaken for a census of CIOs or for realized outcomes. The source material does not provide enough methodological detail to assess weighting, sampling frame, response rate or representativeness.

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  • Planned investment is not actual spending. Budget increases and hiring plans are expectations reported for 2025.
  • Reported AI adoption is not proof of impact. Use cases and operational change do not, on their own, establish a financial return.
  • Respondent groups matter. Figures refer to IT leaders, respondents or LOB professionals as specified; they should not be treated as interchangeable populations.

Read the official 2025 State of the CIO Survey report and CIO.com’s overview of the findings and executive perspectives for the source details.

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