Beancounters at Gartner herded 2,501 tech leaders between 1 May and 30 June 2025, including 284 government CIOs into a locked room and would not feed them tea and biscuits until they talked about their spending plans. Apparently, Big G found officials remain determined to pour cash into AI and other shiny toys to modernise services and chase mission goals.
Gartner director analyst Arthur Mickoleit said: “Geopolitical shifts and economic volatility are forcing government CIOs to adjust their priorities for next year rapidly. They are being asked to demonstrate the mission impact of technology investments, including cost savings and user experience.”
The survey says cybersecurity, AI, generative AI, and cloud platforms sit at the top of the spending queue, with 85 per cent, 80 per cent, 80 per cent, and 76 per cent of respondents planning bigger investments.
Around 74 per cent of government CIOs have already deployed or plan to deploy AI in the next 12 months, with generative AI slightly higher at 78 per cent. Interest in AI agents is rising, with 49 per cent looking to use them in the coming year.
Mickoleit said: “Agentic AI is emerging as an enabler of government transformation, but CIOs must remain mindful of the hype that can distract from more mature technologies like machine learning and business process automation.”
He said expectations are running high after years of digital government spending.
The survey notes rising pressure on CIOs to boost workforce productivity in 2026, with 51 per cent planning a stronger focus there, followed by 38 per cent targeting new digital products and services, and 37 per cent aiming to improve citizen experience.
Mickoleit said: “CIOs should prioritise AI initiatives that rapidly improve internal efficiency and productivity. At the same time, governance practices must be updated to modernise procurement, manage limited resources and balance risks with opportunities in citizen-facing AI applications.”
Global politics is shaping procurement decisions, with 55 per cent of government CIOs expecting to change their relationships with tech vendors due to geopolitical tensions and concerns about digital sovereignty. More than 39 per cent plan to work more closely with providers based in their own region.
Mickoleit said: “Government CIOs are increasingly seeking to reduce dependence on global technology vendors to strengthen resilience. Many are now factoring geopolitical risk into vendor selection and long-term planning. Mapping risks and dependencies across public sector technology stacks will ensure they can mitigate and absorb future disruptions.”
