Logicalis research shows 94% of CIOs report growing appetite for AI, but many warn adoption is moving too fast and governance, skills and sustainability frameworks are struggling to keep pace.
Logicalis has revealed that organisations are racing to invest in AI faster than they can manage it.
According to its annual CIO Report, which surveyed more than 1,000 CIOs globally, a gap is emerging between ambition and operational readiness, with governance, skills and infrastructure struggling to keep pace.
Most organisations (94%) report an increased appetite for AI over the past year, yet the structure to support that ambition is lagging. 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. More than 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 and data-driven forecasting and enhancing the customer experience. However, two-thirds of CIOs do not believe they can scale AI beyond initial deployments.
The most frequently cited constraint is not funding but skills. A lack of internal technical capability is holding back AI ambitions in almost nine out of 10 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 is more, 76% of CIOs say unchecked AI remains a serious concern for them.
Tension between early success and scaling challenges is compounded by broader nervousness about the AI market itself, with 67% concerned about an ‘AI bubble’. A further 16% say they lack continuity plans should a key AI provider become unavailable, a reminder that organisations are building dependencies on these platforms.
On this year’s report, 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”.
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. This shifts the CIO’s relationship with technology from direct ownership to orchestration, delivering the depth of expertise the pace of AI demands.
