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Report: Appetite for AI Investment Higher Than Manageable for CIOs

Rachel Sim

,

CIO AI
New survey finds that a lack of internal technical capability is holding back AI ambitions in almost nine out of ten organisations.

A Logicalis survey of over 1,000 chief information officers (CIOs) globally has found that a gap is emerging between ambition and operational readiness, with governance, skills and infrastructure struggling to keep pace with CIOs AI ambitions.

More than half believe AI adoption is already moving too fast, and an overwhelming 89% describe their organisation’s current approach as “learning as we go.”

Driving that appetite is early evidence that AI delivers. Over a third of organisations have accelerated their AI initiatives based on proof-of-concept results, and the technology is delivering impact in areas such as strengthening predictive analytics, data-driven forecasting and enhancing the customer experience. 

However, two-thirds of CIOs don’t believe they can scale AI beyond initial deployments, predominantly due to skills shortages.

A lack of internal technical capability is holding back AI ambitions in almost nine out of ten organisations. However, structural frameworks are also a significant challenge. 

While most CIOs use AI governance controls to some extent, 62% report compromising on governance due to limited knowledge and just 44% say they fully grasp the risks of AI adoption. What’s more, 76% of CIOs say unchecked AI remains a serious concern for them.

CIO faced with ESG pain points

Layered onto these challenges is an emerging sustainability dimension that few organisations are ready for. As AI workloads grow, so does their energy footprint. 

Just 39% of CIOs are extremely confident their organisation actively manages AI’s environmental impact, and only 41% express the same level of confidence that energy efficiency is prioritised in AI deployment.

Faced with these pressures, 94% plan to lean on Managed Service Providers over the next two to three years to help navigate AI governance, scaling and sustainability. 


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This shifts the CIO’s relationship with technology from direct ownership to orchestration, delivering the depth of expertise the pace of AI demands.

Bob Bailkoski, Logicalis CEO said: “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”.

Rachel Sim

Staff Writer, DIGIT

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