A new Gartner survey shows that 52 percent of government CIOs (excluding the US) expect their IT budgets to increase in 2026, driven by rising demand for AI, cybersecurity, and cloud technologies. This outlook comes despite growing budget pressures, as governments recognize the critical role of digital transformation in modernizing public services and achieving mission outcomes.
The findings are based on the 2026 Gartner CIO and Technology Executive Survey, which collected responses from 2,501 leaders between May 1 and June 30, 2025, including 284 government CIOs (excluding the US). The results highlight shifting priorities as geopolitical tensions, economic volatility, and heightened citizen expectations reshape the government technology landscape.
Arthur Mickoleit, Director Analyst at Gartner, noted that government CIOs are under increasing pressure to show clear mission impact from their technology investments. Cost efficiency, enhanced user experience, and measurable service improvements are becoming essential benchmarks for evaluating digital initiatives.
Cybersecurity remains the top priority, with 85 percent of government CIOs planning to increase spending in 2026. AI and generative AI follow closely at 80 percent each, underscoring their rising importance in automating operations, improving decision-making, and enhancing service delivery. Cloud platforms also stand out, with 76 percent expecting to allocate more resources to strengthen resilience, scale infrastructure, and support modern workloads.
AI deployments are set to accelerate across government departments. Seventy-four percent of CIOs have already deployed or plan to deploy AI within the next year, and adoption of generative AI is even higher at 78 percent. Interest in AI agents is growing, with nearly half either deploying or preparing to deploy them within 12 months. These intelligent agents are emerging as a key enabler of government transformation by automating complex workflows and supporting frontline service delivery.
Arthur Mickoleit emphasized that while agentic AI offers major opportunities, CIOs must balance experimentation with mature technologies such as machine learning and business process automation. Governments have invested heavily in digital government initiatives over the years, and expectations are high for the next wave of innovation to deliver real productivity gains.
Productivity improvement tops the priorities for 2026, with 51 percent of CIOs increasing focus on building a more efficient workforce. This is followed by the push to launch new digital products and services at 38 percent and enhance citizen experience at 37 percent. These priorities reflect a broader shift toward outcome-based digital strategies that streamline internal operations while elevating service quality.
To ensure success, CIOs are being urged to prioritize AI initiatives that yield rapid internal efficiency gains. At the same time, governance frameworks must evolve to address new risks, modernize procurement models, and support responsible use of AI in citizen-facing applications.
The survey also highlights shifting vendor strategies as global uncertainty continues. Fifty-five percent of government CIOs expect to change how they engage with technology providers due to geopolitical tensions and digital sovereignty concerns. Location is becoming a key factor in procurement, with 39 percent planning to work more closely with vendors based within their own region.
Arthur Mickoleit said governments are increasingly seeking to reduce reliance on global technology suppliers to strengthen operational resilience. By mapping dependencies and assessing geopolitical risks across their technology stacks, CIOs can better plan for disruptions and build more secure, adaptable digital ecosystems.
The survey makes clear that 2026 will be a pivotal year for government technology modernization. With rising investment in AI, cybersecurity, and cloud platforms, coupled with a sharper focus on operational resilience, public-sector CIOs are positioning their organizations to navigate a fast-changing global environment and deliver stronger outcomes for citizens.
Rajani Baburajan
