Government CIOs expect IT budgets to increase in 2026, with digital sovereignty a rising priority
Over half (52%) of government CIOs outside the US expect their IT budgets to rise next year, according to a new survey by consulting firm Gartner.
The research finds that government IT investments are expected to increase despite overall budget pressures, which Gartner puts down to “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 2,500 respondents, including 284 government CIOs outside the US.
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%).
According to the survey, 55% of government CIOs also 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”, according to Gartner, with 39% of government CIOs surveyed 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,” said Arthur Mickoleit, director analyst at Gartner. “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.”
Read more: Canada aims to integrate digital sovereignty into government decision-making
Productivity focus
According to the survey, 74% of government CIOs have already deployed or plan to deploy AI within the next 12 months, rising to 78% for generative AI. Interest in AI agents is also rising, with 49% reporting current or planned deployment in the next 12 months.
“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,” said Mickoleit. “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.”
Read more: Government Transformed podcast examines opportunity for AI agents in civil services
More than half (51%) of government CIOs said they will increase their 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,” said Mickoleit. “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.”
Read more: Report identifies top emerging technologies for government
About Sarah Wray
Sarah has over 15 years’ experience as a journalist with a specialism in the public sector and topics such as digitalisation and climate action. Sarah was formerly the editor of Cities Today and Smart Cities World, as well as a specialist video-based publication in the aerospace sector. She has also written for publications including Smart Cities Dive, Mobile Europe, Mobile World Live and Computer Weekly.
Related Posts
