2026-01-15 06:33Summary of Key Points from the Citi CIO Survey Industry Overview - The survey focuses on the Global Technology & Communications sector, specifically examining IT budget growth expectations among CIOs in the US and EMEA regions [1][2][23]. Core Insights 1. IT Budget Growth: - IT budgets are expected to grow by +3.3% over the next 12 months, an increase from +1.9% in the previous survey [2][23]. - US IT budget growth accelerated to +3.6%, while EMEA saw an increase to +2.4% [2][26][27]. 2. Investment Priorities: - The top investment priority for CIOs is Data Analytics/Generative AI, followed by Cybersecurity and Digital Transformation [3][29]. - Data Analytics/GenAI reclaimed the top rank, indicating a shift in focus from Cybersecurity, which is now the second priority [3][12]. 3. Generative AI Trends: - Generative AI accounts for approximately 6% of IT budgets, with CIOs favoring Microsoft as the preferred vendor, followed by Amazon, OpenAI, and Google [4][58]. - There is a notable expectation among CIOs that investments in Generative AI will lead to headcount reductions, with 53% anticipating this outcome within the next 1-2 years [16][63]. 4. Cybersecurity Budget Growth: - Cybersecurity budgets are expected to grow by ~6.7%, reflecting a ~1.6pt increase in growth expectations [12]. - 64% of CIOs believe that Generative AI initiatives will drive higher cybersecurity budgets [12]. 5. Sector-Specific Insights: - Application & Data/Analytics Software: Remains a high priority, with a focus on data modernization and AI infrastructure [8]. - Cloud Providers: Anticipated to benefit from increased spending, with projections for AWS and Google Cloud revenues growing by +22.5% and +36% respectively [15][19]. - European Technology: Shows improving sentiment with a projected IT budget growth of +2.4%, although still below trend rates [19]. Additional Important Insights 1. Vendor Consolidation: - There is a strong trend towards vendor consolidation in the cybersecurity space, with CIOs looking to streamline their vendor relationships [12][50]. 2. Public Cloud Spending: - Spending on public cloud infrastructure services is expected to grow by 6.1% year-over-year, indicating a robust demand for cloud services [15][48]. 3. Headcount and AI: - The expectation of headcount reductions due to Generative AI investments has increased, with 77% of CIOs expecting these savings within the next two years [16][63]. 4. Economic Sentiment: - CIOs report a less negative outlook on the macroeconomic environment, with 31% indicating improved conditions over the last quarter [19][32]. 5. Pricing Behavior: - A majority of CIOs have noted that software vendors are maintaining or increasing prices, which could impact budget allocations [38]. This summary encapsulates the key findings from the Citi CIO Survey, highlighting trends in IT budget growth, investment priorities, and the impact of Generative AI on the technology landscape.