Logicalis 2026 CIO Report: CIOs navigate surging AI investment amidst growing governance concerns

• 94% of CIOs say organisational appetite for AI is growing, yet half say adoption is too fast
• CIOs report early proof-of-concept success, but two-thirds don't believe they can scale AI beyond initial deployments
• 62% report compromising on governance due to limited knowledge
• 76% of CIOs say unchecked AI remains a serious concern
• Just 39% of CIOs are confident their organisation actively manages AI's environmental impact

LONDON, March 3, 2026 /PRNewswire/ -- Logicalis, the leading global technology service provider, today reveals that organisations are racing to invest in AI faster than they can manage it. According to its annual CIO Report, which surveyed over 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. 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 and data-driven forecasting and enhancing the customer experience. However, two-thirds of CIOs don't 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 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.

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.

To see the full report head to https://www.logicalis.com/cio-report

About the research

At the end of 2025, Logicalis commissioned independent market research specialist Vanson Bourne to do a survey. Vanson Bourne interviewed 1,000 Business and IT professionals across EMEA, APAC, US and South America. Only respondents with over 250 employees with involvement in digital transformation and cloud computing within their organisations were interviewed.

About Logicalis

We are Architects of Change™. We help organisations succeed in a digital-first world. At Logicalis, we harness our collective technology expertise to help our clients build a blueprint for success, so they can deliver sustainable outcomes that matter.

Our lifecycle services across cloud, connectivity, collaboration and security are designed to help optimise operations, reduce risk and empower employees.

As a global technology service provider, we deliver next-generation digital managed services, to provide our clients with real-time visibility and actionable insights across the performance of their digital ecosystem including reliability, user experience, security, economic performance and sustainability. 

Our 7000+ 'Architects of Change' are based in 30 territories around the globe, helping our 10,000+ clients across a range of industry sectors, create sustainable outcomes through technology.

Logicalis has annualised revenues of $1.63 billion, from operations in Europe, North America, Latin America, Asia Pacific, and Africa. It is a division of Datatec Limited, listed on the Johannesburg Stock Exchange, with revenues of over $3.6 billion.