We have just released our latest report, highlighting 10 critical predictions for CIOs worldwide. As we look toward 2025, the pivotal role of technology in driving business success in Europe has never been more apparent.
In a new era of rapid technology-driven transformation, CIOs must be at the forefront, managing new cybersecurity threats while navigating the fundamental uniqueness of AI innovation and the complexities of evolving regulations.
The Unprecedented Imperative
As European organizations head into an uncertain future, they are facing unprecedented challenges and opportunities. The rapid evolution of AI technologies, coupled with increasingly stringent regulatory requirements and political uncertainty, is reshaping the landscape in which businesses operate. With data privacy laws expanding, particularly in Europe, and the growing demand for responsible AI, CIOs are being called upon to not only drive business advantage but also to ensure that innovation aligns with ethical standards and compliance frameworks.
These shifts require CIOs to adopt a more strategic role, balancing the pursuit of organization-wide innovation with the need to manage risk and maintain regulatory compliance. According to our research, by 2025, over 85% of organizations will formalize AI governance policies to align with business goals, a clear indication that the governance of emerging technologies is a top priority.
Increasing Responsibility Demands a Different Approach
Looking ahead, the role of the CIO is expected to expand even further. The increasing threat landscape is driving organizations to diversify their cybersecurity strategies, with 55% of CIOs expected to broaden security measures by 2026 to protect against new and evolving threats and attackers. Additionally, by 2027, we predict that 65% of CIOs will be directly responsible for integrating sustainability goals into technology projects, reflecting the growing importance of environmental, social, and governance (ESG) considerations.
These predictions highlight the need for CIOs to stay agile and proactive. The focus is not only on driving business success through technological innovation, but also on aligning these initiatives with longer-term strategic objectives, such as eliminating legacy infrastructure, introducing new skills, and developing the workforce to harness newly available opportunities. The ability to navigate this complex environment will differentiate successful organizations from those that struggle to keep pace.
Opportunities for CIOs in 2025
The future presents a few opportunities for CIOs to drive strategic changes within their organizations:
• Stay Abreast of the Evolving Regulatory Landscape: For multinational enterprises, navigating the patchwork of regulations across Europe and beyond is increasingly complex. By 2025, half of the G1000 will struggle with divergent regulatory changes that could hinder AI innovation. These changes require CIOs to adopt robust compliance strategies, ensuring that their technology deployments are aligned with both local and international standards.
• Technical Debt Reduction: By 2025, 40% of CIOs will prioritize initiatives to reduce technical debt, leveraging modernization efforts to gain a competitive edge. This shift will enable faster time-to-market and greater operational efficiency.
• Moving Beyond AI Experimentation: This means shifting from pilot projects to implementation, where AI drives tangible business outcomes. By focusing on the ROI of AI investments, CIOs can guide the organization towards unlocking real value, streamlining operations, and gaining competitive advantage. The key will be to transition from isolated tests to integrated AI strategies and platforms across and with ecosystem owners.
• AI and Cyber Resilience: As AI becomes integral to incident management, organizations that effectively integrate AI-infused applications will significantly improve their resilience. By 2027, only half of organizations will fully leverage AI for proactive incident detection, highlighting a significant area for CIOs to focus on.
• Strategic Workforce Development: With 80% of G1000 CIOs expected to be hired from outside their current organizations by 2028, there is a clear trend toward bringing in fresh perspectives and skills to lead digital transformation. This represents opportunities for CIOs who can demonstrate increased business value and risk reduction early. Across Europe, upskilling and reskilling current teams will be crucial to maintain competitiveness.
• Shift Sustainability from Corporate Buzzword to a Strategic Imperative: By embedding sustainability goals into technology projects, CIOs can drive both cost efficiencies and stimulate brand loyalty across Europe. The push toward ESG integration is not only about compliance reporting but also about future-proofing organizations against environmental and societal risks.
The 10 Predictions for 2025
1. Regulatory Complexity: By 2025, 50% of the G1000 will face challenges adapting to divergent regulatory changes, impacting their AI strategies.
2. AI Governance: By 2025, 85% of organizations will formalize AI risk management policies to align with business goals.
3. Technical Debt: By 2025, 40% of CIOs will focus on reducing technical debt for competitive advantage.
4. AI Experimentation: By 2026, over one-third of organizations will need to move beyond experimental AI projects to realize ROI.
5. Responsible AI: 80% of CIOs will establish roadmaps for responsible AI by 2026.
6. Cybersecurity Expansion: 55% of CIOs will diversify security strategies by 2026 to address new threats.
7. Sustainability Goals: By 2027, 65% of CIOs will embed sustainability into technology projects.
8. AI-Infused Incident Management: By 2027, only 50% of organizations will fully leverage AI for incident management.
9. CIO Hiring Trends: 80% of G1000 CIOs will be hired externally by 2028, emphasizing the need for digital innovation and strategic leadership skills.
10. Bridging the Skills Gap: By 2028, 50% of G1000 will adopt tools to address digital and AI skills shortages.
Recommendations for CIOs
To successfully navigate these trends and drive organizational success, CIOs should consider the following strategies:
• Invest in AI and Automation: Focus on scalable AI solutions that deliver clear ROI and enhance operational resilience.
• Prioritize Technical Debt Remediation: Embed debt reduction into digital roadmaps to accelerate innovation and efficiency.
• Develop a Strong Compliance Framework: Align technology initiatives with global regulations, particularly around AI governance and data privacy.
• Embrace Sustainability: Integrate ESG goals into all technology projects to enhance both environmental impact and operational efficiencies.
• Focus on Workforce Development: Upskill existing talent and leverage low-code platforms to close the digital skills gap.
• Strengthen Cybersecurity: Diversify security strategies to protect against evolving threats, ensuring both resilience and compliance.
As we move into 2025 and beyond, the role of the CIO is more critical than ever. By aligning technology initiatives with strategic business objectives and embracing a proactive approach to regulatory compliance, sustainability, and workforce development, CIOs can position their organizations for sustained growth and success in a rapidly changing digital landscape.