The evolving CIO: Strategic portfolio management and business leadership
While AI dominates the conversation, CIOs are managing a far broader technology and business agenda—and their role is fundamentally transforming in the process. AI deployment is clearly front and center, but 2026 State of the CIO respondents have a broad mandate and a lot of other initiatives on their plate. Top leadership's no. 1 priority for CIOs this year is to orchestrate the usual technology-oriented projects, including upgrading IT and data security, cited by 25%. Strengthening IT and business collaboration is also high on the CEO priority list, cited by 23% of respondents and fairly consistent with last year's findings, at 22%. This year's IT leader respondents plan to ramp up involvement with AI/machine learning (76%), agentic AI (70%), and cybersecurity (63%).
As organizations map out specific business initiative investments, innovation tied to AI comes first. Responding organizations expect to increase investments across the full complement of AI technologies, including generative AI (67%), machine learning/AI (66%), and agentic AI (65%) over the coming year. Twenty-three percent of State of the CIO respondents expect to work more closely with business leaders on AI programs. Other top priorities include business initiatives aimed at increasing operational efficiency (32%), increasing cybersecurity protections (32%), and improving profitability (31%).
To advance the AI mission alongside these broader organizational goals, organizations are expanding technology initiatives in areas like business process and IT automation (56%), security and risk management (55%), and data and business analytics (54%). Technologies related to IT infrastructure modernization—migrating and developing applications in the cloud (17%), cloud management tools (16%), and application modernization (16%)—are on the decline as organizations pivot toward AI-enabling infrastructure.
Indeed is laser-focused on adapting its data platform in service of this portfolio approach. Much of the effort is focused on adding semantic layers so there is shared business translation between raw data systems. "There is a common definition and logic that takes the knowledge graph of humans and puts it into something that is more agent readable," explains Anthony Moisant, Indeed's CIO and Chief Security Officer. "With the size of our implementations, it's hard to keep track of whether agents are using an approved metric so having universal, shared context across the company, with consistency, is important."
There is an entire process devoted to deciding what is a valuable business case before it gets to the data ecosystem.
Andrea Ballinger, CIO at Rensselaer Polytechnic Institute (RPI), joined this year to reimagine the university's enterprise data ecosystem and leverage agentic AI while maintaining strategic alignment. Among the key building blocks of RPI's new data foundation are a data fabric layer and secure containers designed to leverage data where it resides and a data factory for orchestrating and transforming data at scale. Equally important is designing with strategy and KPIs in mind. "There is a process devoted to deciding what is valuable before reaching the data ecosystem," Ballinger explains. "We are not putting something into the ecosystem hoping for a return." This approach—marrying technological capability with business strategy—reflects the broader CIO role evolution.
From technical leader to strategic business partner
With AI and technology as the primary transformation engine for business, CIOs continue to gain stature and command influence at every level of the organization. CIOs routinely report into the CEO and are juggling multiple positions; almost half (46%) of survey respondents view the CIO as a strategic business leader who proactively identifies business needs and opportunities and follows up with technology and provider recommendations that align with stated business goals.
84% of CIOs say that their role is becoming more digital and innovation focused.
The CIO position also continues to be more digital and innovation focused, according to 84% of IT and 78% of LOB respondents. Eighty-two percent of IT and 76% of LOB respondents say CIOs are actively leading digital transformation initiatives more so than their business counterparts. This elevation reflects the reality that technology is no longer a support function—it is the engine of competitive advantage and business transformation.
82% of CIOs are more involved in leading digital transformation initiatives compared to their business counterparts.
As is the case these last few years, CIOs stand at a crossroads: Cling to the comfort and safety of being a technical, back-office implementor or continue to stretch and grow as a strategic business enabler. The onset of AI intensifies the moment, accelerating the need for forward-looking CIOs to make the leap and redefine their leadership skills for the modern era.
Says TIAA's Durvasula: "The more CIOs can lean in beyond their own organizational structure and disruption, the more influential they will be." For those who embrace this evolution—balancing AI ambition with ROI rigor, managing a complex technology portfolio, and earning a seat at the strategic table—the opportunity is unprecedented.
