Microsoft tops CIOs' AI spending plans, Citi survey finds

On July 9, Citi released findings from its Q2 2026 survey of 100 IT decision makers, revealing that Microsoft ranks as the top AI vendor that CIOs are considering for increased spending—a position ahead of both Amazon and Google. The survey captured a notably improving spending environment compared to the prior quarter in March 2026.

Forward IT budget growth expectations rose to 3.3%, up from 2.6% in the March 2026 survey, a figure Citi noted sits 0.8 percentage points above the seven-year historical average. The acceleration was broad-based: EMEA budget growth climbed to 3.9%, while US growth rose to 3.0%. Citi observed that data analytics and AI remained the top investment priority for IT spending and gained further share relative to other categories. Cybersecurity, digital transformation, and customer-facing applications followed in priority order. Notably, web security jumped into the top-priority group, a shift Citi attributed to a surge in bot and agentic internet traffic along with expanding API surfaces—concerns that have evidently elevated security's standing in IT budgets.

The results signal a sustained and accelerating appetite among enterprises for AI-driven solutions and cloud infrastructure. Microsoft's position at the top of CIOs' spending intentions reflects confidence in its AI capabilities across its cloud platform Azure, productivity services, and broader enterprise offerings. The survey evidence of budget growth outpacing historical norms suggests that the near-term environment for major AI vendors remains supportive.

Citi's Q2 2026 survey captures a notable inflection in enterprise IT spending momentum. The forward budget growth rate of 3.3% represents a meaningful acceleration from 2.6% just one quarter earlier and exceeds the seven-year historical average by 0.8 percentage points—a signal that CIOs have moved beyond caution and are committing real resources to AI initiatives. This shift appears broad-based: both US IT budgets (up to 3.0%) and EMEA budgets (up to 3.9%) accelerated together, suggesting the trend is not isolated to a single region.

Microsoft's ranking as the top AI vendor CIOs intend to increase spending with places it ahead of cloud rivals Amazon and Google, reflecting the breadth of its AI-enabled product portfolio spanning Azure cloud services, Microsoft 365 productivity tools, and enterprise solutions. The survey also highlights where CIO priorities are shifting: web security jumped into the top-priority group, driven by what Citi attributes to a surge in bot and agentic internet traffic and expanding API surfaces—a detail that underscores how enterprises are managing new operational risks alongside AI adoption.

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