Geopolitical shifts and economic volatility are forcing chief information officers (CIOs) in the public sector to rapidly adjust their priorities for next year, 2026, said Arthur Mickoleit, Director Analyst at Gartner.
Referring to CIOs, he further said, “They are being asked to demonstrate the mission impact of technology investments – including, but not limited to, cost savings and user experience.”
A survey by Gartner also revealed 52% of government CIOs outside of the U.S expect IT budgets to increase for AI and other key technologies in 2026. IT Investments to rise despite overall budget pressures, driven by demand for tangible mission outcomes.
This was despite overall budget pressures, with governments globally (excluding the U.S) recognising their transformational potential for modernising public services and achieving critical mission objectives, the firm observed.
The top four technologies government CIOs (not including the U.S.) plan to increase investments in next year are cybersecurity (85%), AI (80%), generative AI (80%) and cloud platforms (76%), as per Gartner.
Gartner further said, 74% of government CIOs (U.S not included) have already deployed or plan to deploy AI within the next 12 months, with GenAI higher at 78%. Interest in AI agents is also rising, with 49% reporting current or planned deployment in the next 12 months.
Meanwhile, global CIOs are also reassessing vendor relationships amid global uncertainty. For instance, Gartner found that 55% of public sector CIOs (US excluded) expect changes in how they engage with technology providers due to rising geopolitical tensions and digital sovereignty concerns. Location was now a defining factor in procurement decisions next to cost or scale, with 39% of government CIOs (not including the U.S.) planning to work closer with technology providers based in their own region.
“Government CIOs are increasingly seeking to reduce dependence on global technology vendors to strengthen resilience. Many are now factoring geopolitical risk into vendor selection and long-term planning,’’ Mr. Mickoleit further said.
Published – December 01, 2025 11:56 pm IST
