CIOs warn AI adoption is outpacing governance skills

Logicalis has reported a widening gap between organisations' enthusiasm for artificial intelligence and their ability to govern and scale it, with more than half of chief information officers saying adoption is moving too fast.

Its 2026 CIO Report, based on a global survey of 1,000 senior business and IT professionals, found that 94% of CIOs said organisational appetite for AI had increased over the past year. At the same time, 89% described their organisation's approach as "learning as we go".

The results suggest organisations are investing aggressively in AI tools and projects while struggling with skills, governance and operational readiness. Two-thirds of respondents said they did not believe their organisation could scale AI beyond initial deployments and pilot projects.

Pilot plateau

Many organisations reported early success with proofs of concept. More than a third said they had accelerated AI initiatives based on proof-of-concept results. Use cases included predictive analytics, data-driven forecasting and efforts to enhance customer experience.

Scaling those early projects remains difficult. The survey suggests the barriers are less about budget and more about people and process. Almost nine in ten organisations said a lack of internal technical capability was holding back AI ambitions.

Governance emerged as another pressure point. While most CIOs said they use AI governance controls to some extent, 62% reported compromising on governance because of limited knowledge. Only 44% said they fully grasp the risks of AI adoption.

Concern about uncontrolled deployment also featured prominently, with 76% of CIOs saying unchecked AI remains a serious concern.

Market risk

Beyond internal readiness, the report highlighted anxiety about the wider AI market, including inflated expectations and vendor stability. The survey found that 67% were concerned about an "AI bubble".

Continuity planning also emerged as a weak spot. The report found that 16% lacked plans for the loss of a key AI supplier or platform.

The findings reflect how quickly AI services have become embedded in business operations, often through third-party platforms and cloud services. They also underscore the dependency risks that can build when organisations adopt tools faster than they develop internal expertise.

Governance strain

Many CIOs described governance as a moving target, with uncertainty around controls, accountability and risk management. Limited knowledge was again cited as a driver of compromised governance, suggesting some organisations are rolling out AI faster than they can standardise policies and processes.

For large organisations, governance can span multiple functions, including data management, security, regulatory compliance, procurement and model oversight. The results suggest many CIOs do not yet feel fully equipped to assess risks consistently across these areas.

Bob Bailkoski, chief executive of Logicalis, said: "This year's report reveals a complex challenge for CIOs navigating the biggest innovation of our lifetime. Organisations are not short of ambition or appetite for AI, they are short of the frameworks, skills and confidence to deploy it at scale. The challenge right now is not whether to invest in AI, but how to build the foundations that will make that investment effective, safe and sustainable. Today's CIO is no longer just a technology operator, they are strategically coordinating risk, ensuring accountability and driving value creation throughout the entire organisation".

Energy impact

Sustainability also emerged as a growing concern. As AI use increases, so does demand for compute and energy, especially when systems run at scale across multiple business units.

Only 39% of CIOs said they were extremely confident their organisation actively manages AI's environmental impact. A similar proportion said energy efficiency is prioritised in AI deployment (41%).

The results suggest many organisations are still at an early stage of measuring and managing the operational footprint of AI systems, and that AI sustainability practices may lag behind broader corporate sustainability programmes.

Services shift

One response was increased reliance on external partners. The report found that 94% plan to lean on managed service providers over the next two to three years for AI governance, scaling and sustainability.

The shift points to greater outsourcing of specialised skills and operational oversight, particularly where internal teams remain stretched. It also reflects a broader trend of balancing in-house development with third-party services for complex technology operations.

The research was conducted by Vanson Bourne and focused on organisations with more than 250 employees. Respondents were involved in digital transformation and cloud computing across organisations in EMEA, APAC, the US and South America.

Logicalis operates across Europe, North America, Latin America, Asia Pacific and Africa. It reported annualised revenue of USD $1.63 billion and is a division of Datatec, which is listed on the Johannesburg Stock Exchange.