Observed Signal · Aug 19, 2026 · Market Signal · Source: Citrix · Impact: 4/5
Citrix Virtual Apps and Desktops 2607 LTSR: Why standing still costs more than upgrading
Most technology budgets are shrinking. Most IT environments are not. IT leaders are being...
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CIOs Prioritize AI, Cybersecurity and IT Modernization
A Lünendonk study finds that despite economic uncertainty and budget pressures, many companies plan higher IT spending in 2026–2027, prioritizing cyber security, IT modernization, digital sovereignty and employee upskilling. Cyber security is named the top investment priority, while AI is increasingly embedded across IT functions (software development, security, support). Rising license- and token-based costs for AI are forcing CIOs to scrutinize project economics. On the supplier side, Data & AI, cloud transformation and cyber security are seen as key growth drivers for IT service providers.
McKinsey: How CIOs Can Control AI Budget Overruns
A McKinsey survey reveals that the vast majority of companies significantly exceed their AI budgets, with more than half overspending by over 10% and nearly a tenth by at least 31%. Only 5% stick to their planned AI spending. The study, published in McKinsey Quarterly, highlights that many firms lack transparency and control over AI costs, which can spiral faster than traditional tech spending. CIOs are urged to adopt a 'cost manager' role, focusing on FinOps teams, cost allocation, and concentrating investments where they create the most value, potentially reducing AI expenditures by 20-30%. This shift from a 'go, go, go' to a 'wait a moment' approach reflects growing pressure to justify AI spending.
ZHAW study: Budgets fall despite AI use
The fifth ZHAW trend study 'Communication in Digital Transformation' finds that 99% of German-Swiss communications departments now use generative AI, mostly in systematic ways across tasks such as research, concepting, data analysis, and audio/video production. Despite rising digital maturity and broad AI adoption, around 40% of surveyed public-sector organizations and over half of private sector companies reported declining communications budgets in recent years. The study surveyed 115 chief communications officers in German-speaking Switzerland and included ten in-depth interviews. Project leader Nicole Rosenberger and co-project leader Markus Niederhäuser lead the biennial research, which also supports a ZHAW continuing education programme (CAS Digital Transformation, AI and Communication).
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