The evolution of the Chief Information Officer (CIO) role has never been more dynamic. According to Foundry’s latest “State of the CIO” research for 2025, technology leaders are not only fulfilling essential IT responsibilities but are also becoming pivotal players in business innovation, digital strategy, and cultural transformation—especially around AI adoption.
This year’s survey, based on responses from 906 IT executives and 250 business line professionals, offers deep insights into how CIOs are navigating the ever-expanding demands of their roles. Most notably, it underscores the critical role CIOs play in accelerating artificial intelligence (AI) integration across enterprises.
AI at the core: 75% of CIOs to deepen AI involvement in 2025
75% of CIOs surveyed reported working closely with business units to implement AI applications, reflecting a strong collaboration between IT and non-IT stakeholders. Meanwhile, 71% of IT departments are taking the lead on AI adoption, aligning strategies with business goals to drive meaningful outcomes.
AI is clearly dominating the IT agenda. When asked about their top priorities, 26% of CEOs identified AI product research and implementation as the primary focus for their IT leaders in 2025. Furthermore, 75% of IT leaders anticipate becoming even more involved in AI and machine learning (ML) initiatives in the coming year.
Strategic role on the rise: 41% of CIOs now identify as strategic leaders
While CIOs have traditionally been viewed as custodians of IT infrastructure, that image is rapidly changing. The 2025 report finds that 41% of CIOs now identify their role as primarily strategic, a jump from 35% in 2024. This figure is even higher among respondents from the financial services (50%) and high-tech (47%) sectors.
Looking ahead, 52% of IT leaders expect to maintain a strategic focus over the next three to five years, with another 32% anticipating a transformational role. Only 16% plan to remain in a traditional, functional IT capacity, showing a marked shift in expectations and responsibilities.
Digital innovation and business growth take priority
The CIO charter is now more innovation-centric than ever before. 82% of IT respondents and 76% of their business counterparts indicated that CIOs are leading digital transformation efforts. This is a significant change from previous years, where operational efficiency and cybersecurity topped the list of priorities.
In 2025, business leaders are prioritizing initiatives that generate new revenue streams. Monetizing company data was cited by 38% of respondents as the top business imperative, followed by improving customer experience (35%) and developing digital revenue channels (32%). Compliance also remains a key area of focus (35%).
Interestingly, business line leaders have their own list of priorities. While customer experience remains a shared goal, LOB professionals place a higher emphasis on increasing cybersecurity (29%) and accelerating AI-driven innovation (28%) than their IT peers.
AI and ML: The #1 tech investment for 42% of organizations
AI and machine learning top the list of 2025’s most important technology initiatives, cited by 42% of respondents. Security and risk management (34%) and data analytics (31%) follow closely behind.
Industries vary in their approach to these investments. Services-based companies are more likely to see AI/ML as strategic (54%), whereas healthcare organizations prioritize security and risk management (48%). Healthcare also stands out for its strong investment in customer experience technologies, with 35% listing it as a top priority, above the overall average.
AI reshaping operations: 68% say AI is already making an impact
The emphasis on AI is already yielding measurable results. 68% of IT leaders report that AI has either started to reshape or is significantly transforming business operations. This sentiment is even stronger in high-tech (77%) and financial services (75%) industries.
Currently, AI is being used primarily to automate internal processes (69%), especially in finance where operational streamlining is vital. Customer-facing AI applications are also on the rise, with 62% of respondents confirming implementation in this area.
While CIOs are primarily responsible for researching and evaluating AI technologies (cited by 80% of IT leaders and 75% of LOB respondents), the push for adoption is not happening in isolation. Business units are also playing an active role, with 72% of LOB professionals and 69% of IT leaders acknowledging their involvement.
80% of CIOs still handle traditional IT duties
Despite the surge in strategic responsibilities, traditional IT tasks remain a significant part of the CIO’s workload. 80% of respondents said they still spend considerable time on core IT functions, such as system performance and cybersecurity management, especially in retail (88%) and manufacturing (86%).
Functional duties that dominate the agenda include managing security and improving IT operations (38%), cost control (30%), and vendor negotiations (24%).
However, CIOs are also deeply involved in transformation and strategic planning. 77% are leading modernization efforts, aligning IT with business goals (31%), and redesigning critical processes (26%). Meanwhile, 27% are focused on innovation and business strategy, with another 22% analyzing market trends to identify growth opportunities.
Looking three years ahead, 71% expect to devote more time to business strategy—up from 66% at present, while continuing to prioritize security (27%) and transformation efforts.
The year ahead: Focus areas for CIOs
The areas where CIOs expect to dedicate the most time in 2025 include:
- AI and ML initiatives (75%)
- Cybersecurity (65%)
- Product innovation and development (56%)
- Data analytics (56%)
Conversely, less time is expected to be spent on diversity, equity, and inclusion (DEI) initiatives (24%), multi-cloud management (20%), and cloud migration (19%).
IT budgets rising: 65% of CIOs forecast increased spending in 2025
The CIO’s visibility in the C-suite remains high, with 58% of CIOs continuing to report directly to the CEO.
Despite global economic uncertainty, IT budgets are expected to increase. 65% of CIOs foresee a rise in funding, while 24% expect budgets to remain stable. On average, IT budgets are projected to grow by 6.89% in 2025. Currently, IT departments control around 40% of overall technology spending.
The main reason for budget increases is the need for AI-related investments, cited by 31% of respondents. These funds will support new products, services, and process optimization through AI and ML.
AI talent in demand: 38% cite difficulty hiring for AI/ML roles
While funding isn’t a major constraint, access to skilled talent is a persistent challenge. 54% of CIOs said staffing issues have taken time away from more strategic work. The problem is especially acute in government (69%), financial services (61%), and healthcare (61%).
The most difficult roles to fill are those requiring expertise in AI/ML (38%), cybersecurity (33%), and data science (21%). In contrast, traditional IT skills like DevOps (14%), cloud services (13%), and enterprise software (13%) are proving easier to recruit for in 2025.
CIO satisfaction: 1 in 3 highly satisfied despite increased stress
Despite the increased workload and evolving responsibilities, most CIOs remain satisfied with their jobs. One-third gave top marks to their overall job satisfaction, and 20% said they were content with their work-life balance. However, 20% acknowledged experiencing high levels of stress, and 15% admitted to feeling burnt out.
Even with these pressures, the expanding strategic role of CIOs places them at the forefront of organizational success. As AI becomes integral to business transformation, today’s CIOs are uniquely positioned to lead companies into a new era of innovation, growth, and resilience.
Source: Foundry
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