Introduction Definitions of AI Types Artificial intelligence (AI) is advancing at a rapid pace, reshaping industries andredefining how value is created across the global economy. IDC researchshows enterprises accelerating their transition toward becoming truly AI-fueled organizations. From private companies seeking to elevate customerexperiences to public sector institutions improving citizen services, theopportunities to apply AI for meaningful outcomes continue to expand. Analyzes large data sets to uncover long-term behavioral patterns for forecasting. Building on last year’s “AI-nomics” theme, which emphasized ROI and thebusiness case for initial AI investments, this year’s focus reflects an increased Analyzes unstructured data—such as language,images, and event streams—to uncover patterns and derive insights. impact across different functional areas. CIOs face critical decisions arounddata sovereignty, cybersecurity, and the selection of appropriate AIdeployment models—whether private, public, or hybrid cloud—to balanceperformance, control, and risk. Early adopters are extending their lead bypursuing a holistic, enterprise-wide approach to AI strategy, governance, anddeployment. existing content or code as a foundation, usingLarge Language Models (LLMs). offers practical guidance for advancing your organization’s AI maturity. In anenvironment where competitive advantage increasingly depends on theeffective use of AI, the race is on—and CIOs play a decisive role in setting thepace and shaping the outcome of their enterprise’s AI journey. The need to acthas never been greater; those who move swiftly and strategically will be in aleadership position to define the next era. making decisions, and taking actions throughthe perception-reasoning-action loop. Key FindingsThe Race for Enterprise AIis Reshaping the CIO Agenda AI is now the core driver of business reinventionOrganizations are shifting from viewing AI as an efficiency tool to treating it as thestrategic engine for transforming business models, operations, and customer value. CIOs play a pivotal role in translating this ambition into enterprise-wide reality. Functions well beyond IT are embracing AI to solve problems, automate work, andaccelerate insight. This growing momentum across teams reinforces the need for unified platforms, shared standards, and strong partnerships between IT and business leaders. practicesAs AI becomes embedded in every workflow, organizations must strengtheninfrastructure, data readiness, and governance. The proliferationof agentic andgenerative AI makes responsible AI frameworks, which ensures security, transparency, and sustained innovation, pivotal and renders their adoption a necessity. CIO Strategic Imperatives Here are some key insights from IDC’s research involving 3,120 IT and business decision makers (ITBDMs) globally, along withconsiderations for CIOs for 2026: CIO Strategic Imperatives Here are some key insights from IDC’s research involving 3,120 IT and business decision makers (ITBDMs) globally, along withconsiderations for CIOs for 2026: GlobalInsights Business PrioritiesAI as the Engine for Business Reinvention are shifting. Last year’s top goal of improving employee productivity has dropped four spots, replaced by a new focus on enhancing innovation and driving reinvention. At the sametime, pressure to demonstrate ROI is intensifying, with revenue and profit growth jumping up two spots. Customer experience andsatisfaction remain firmly in the top three year overyear, underscoring the need to balance transformation with delivering exceptional value to customers. "We started using AI to optimize and supportcompany consolidation, since our organization was built mostly through M&As. The idea was to use AIfor efficiency and cost reduction, and we’ve used it alot for that. Now, we’re moving beyond cost savingsto focus on quality and proactive operations, usingAI as a foundation for ongoing businesstransformation.“ AI Adoption & ImplementationThe Proliferation of AI Beyond IT early stages of AI development. The technology function remains a critical area to apply AI; however, lines of business suchascustomer service, marketing, and operations arehighlighted as future use case opportunities outside of IT. These functions top the list for non-IT areas where AI has alreadybeen implemented or will be implementing in the next 12months. 0%1%2%3%4%5%6%7%8%9%10%11%12%13%14%15%16%17%18%19%20%21%22%23%24%25%26%27%28%29%30%31%32%33%34%35%36%37%38%39%40%41%42%43%44%45%46%47%48%49%50%51%52%53%54%55%56%57%58%59%60%61%62%63%64%65%66%67%68%69%70%71%72%73%74%75%76%77%78%79%80%81%82%83%84%85%86%87%88%89%90%On average 48% of target users adopt been contributing to AI AI InvestmentModernizing to Scale AI Capabilities average increase in spend of 13%. Newer AI types like agentic AI and generative AI are capturing theattention of businesses, but spending is expected to be similar across categories. Wh