This blog explores the key areas where CIOs will spend their budgets and strategic efforts, highlighting emerging trends in digital transformation and the critical factors guiding technology investments for the year ahead. Dive in to see what’s shaping the future of tech in 2025 and where US companies are setting their sights. 

Expected Shifts In Technology Investment Strategies 

In 2025, technology investment strategies among US enterprises are expected to undergo notable shifts, with insights gathered from the 2025 Gartner CIO and Technology Executive Survey, which polled 700+ CIOs and technology executives across the US.  

Participants in the survey were asked about anticipated budget changes for specific technology areas, including 

• For each technology area, by how much will your enterprise increase or decrease funding in 2025 compared with 2024? 

• By what percentage do you expect your enterprise’s IT budget to increase or decrease from 2024 to 2025? 

Source: 2025 Gartner CIO and Technology Executive Survey 

The survey results highlight cybersecurity, generative AI, and artificial intelligence as the top three technologies receiving the strongest commitment for increased funding in 2025, with 86% of respondents prioritizing cybersecurity and generative AI and 84% prioritizing broader AI initiatives in general.  

This heightened investment in cybersecurity reflects a growing awareness of the need to protect against cyberthreats in a digital-first world, as organizations place high importance on safeguarding data and maintaining operational resilience.  

Meanwhile, generative AI’s equal prioritization signals a strategic push towards innovation, as businesses recognize its potential to transform productivity, streamline processes, and enable new creative solutions.  

Investments in AI as a whole demonstrate a commitment to enhancing decision-making capabilities and efficiency across sectors, emphasizing technology’s pivotal role in driving future growth. Together, these priorities indicate a shift toward building robust, intelligent, and secure digital infrastructures across US enterprises. 

Source: 2025 Gartner CIO and Technology Executive Survey 

The results also reveal that Generative AI is set to receive the largest increase in funding, with a 34% growth, followed by a 30% rise in broader artificial intelligence initiatives, and a 25% increase in cybersecurity investments, highlighting the ongoing focus on digital innovation and risk management.  

While targeted investments in these advanced technologies signal a strategic prioritization, the overall IT budget change is expected to average only 3.3%, reflecting a cautious expansion across the IT landscape.  

Additionally, companies project an average revenue growth of 4.7%, suggesting an alignment between increased technology investments and moderate business growth expectations. 

Key Priorities For CIOs In Choosing Technology Partners  

When selecting vendors for commodity or nondifferentiated technologies, CIOs prioritize Total Cost of Ownership (TCO), with 85% emphasizing cost-efficiency as crucial. Ease of User Experience (61%) and Customer Experience (51%) follow, reflecting the need for accessible, well-supported solutions in essential technology.  

For competitive or differentiated technologies (cloud computing, AI, RPA, etc)—those that drive strategic advantage—CIOs shift focus to factors that foster innovation. Here, 62% prioritize Innovation, looking for vendors that can deliver unique, forward-thinking solutions. Product Roadmap is also key (58%), as it signals the vendor’s commitment to evolving capabilities aligned with the enterprise’s future.  

Interestingly, TCO remains important even in this category (58%), showing that while innovation matters, cost-effectiveness and long-term value remain influential across all vendor decisions.  

5 Primary Focus Areas for CIOs in 2025 

In the next 12 months, CIOs should concentrate on 5 pivotal areas to navigate an evolving technological and business landscape.  

First, “Managing Technology Risk” is essential as organizations prioritize security and compliance to protect sensitive data and ensure operational continuity. Cybersecurity concerns are significant, with an IBM report indicating that data breach costs reached an all-time high in 2024 at an average of $4.88 million per breach in the US. As cyber threats become increasingly sophisticated, risk management has become a cornerstone of CIO strategies, driving investments in advanced security solutions and risk mitigation protocols. 

Second, CIOs should focus on “Building Software and Delivering Applications” to keep pace with the demand for agile, user-centric digital solutions that meet dynamic customer needs. By enhancing application delivery capabilities, CIOs enable faster development cycles, supporting innovation and competitive advantage. 

Third, CIOs should “Evaluate Emerging Technologies” to stay ahead of disruptive trends, identifying tools that can provide strategic benefits, improve efficiencies, or open new revenue channels.  

According to KPMG’s 2024 US Technology Sector Insights report, the top areas of focus for US businesses are: 

• Everything as a Service (XaaS) 

• Cybersecurity 

• Data Analytics 

• Artificial Intelligence (AI) 

“Managing Technology Financials” comes next, as CIOs face pressure to maximize ROI on tech investments. Effective financial oversight ensures that resources are optimally allocated, balancing innovation with fiscal responsibility. 

Finally, CIOs should “Demonstrate the Business Value of IT” to highlight technology’s impact on business performance. The focus on financial optimization is growing, with many businesses aiming to control technology budgets while still achieving results. This trend is evident as 71% of CFOs prioritize cost management when evaluating technology investments to maximize returns on digital transformation efforts. 

The Path Forward

As U.S. organizations look to enhance their technology plans in 2025, they face a fast-evolving digital landscape that requires resilience, innovation, and alignment with business goals. CMC Global stands ready to support U.S. organizations as they advance their technology strategies for 2025.

With expertise in areas like AI development, cybersecurity, and cloud integration, CMC Global partners with clients to address key tech priorities, such as enhancing resilience, optimizing IT investments, and achieving seamless digital transformation.