Gartner: 52% of government CIOs expect IT budgets to increase in 2026

A survey by Gartner has revealed that 52% of government CIOs (not including the US) expect their IT budgets to increase for AI and other key technologies in 2026. This is despite overall budget pressures, with governments recognising their transformational potential for modernising public services and achieving critical mission objectives.

The 2026 Gartner CIO and Technology Executive Survey gathered data from 2501 respondents from 1 May to 30 June 2025, including 284 government CIOs (not including the US).

“Geopolitical shifts and economic volatility are forcing government CIOs to rapidly adjust their priorities for next year,” said Arthur Mickoleit, Director Analyst at Gartner. “They are being asked to demonstrate the mission impact of technology investments — including, but not limited to, cost savings and user experience.”

The top four technologies government CIOs plan to increase investments in next year are cybersecurity (85%), AI (80%), generative AI (80%) and cloud platforms (76%).

AI deployments to accelerate

According to the survey, 74% of government CIOs 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 (Figure 1).

Figure 1: State of AI deployments in government (not including US). Source: Gartner. For a larger image, click here.

“Agentic AI is emerging as an enabler of government transformation, but CIOs must remain mindful of the hype that can distract from more mature technologies like machine learning and business process automation,” Mickoleit said. “This next wave of innovation will be essential for delivering on public sector priorities, especially as expectations are high following years of investments in digital government.”

The survey reveals high expectations for both AI and other key technologies as government leaders focus on building a more productive workforce in 2026. More than half (51%) of government CIOs will increase focus on boosting employee productivity next year, followed by launching new digital products and services (38%) and improving the overall citizen experience (37%).

“CIOs should prioritise AI initiatives that rapidly improve internal efficiency and productivity,” Mickoleit said. “At the same time, governance practices must be updated to modernise procurement, manage limited resources and balance risks with opportunities in citizen-facing AI applications.”

Reassessing vendor relationships amid global uncertainty

According to the survey, 55% of government CIOs expect changes in how they engage with technology providers due to rising geopolitical tensions and digital sovereignty concerns. Location is now a defining factor in procurement decisions next to cost or scale, with 39% of government CIOs 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,” Mickoleit said. “Many are now factoring geopolitical risk into vendor selection and long-term planning. Mapping risks and dependencies across public sector technology stacks will ensure they can mitigate and absorb future disruptions.”

How governments are adopting AI to improve service delivery to their citizens is discussed in the complimentary Gartner webinar ‘Government Leaders, Is Your Data Ready to Enable Secure AI Initiatives?’

Top image credit: iStock.com/Supatman