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CIOs and CTOs View Agentic AI as Core to Future IT Operations

Significant improvements in operational resilience, more effective use of automation and faster time to market are driving optimism about IT spending in 2025, with a majority of leaders expecting their budgets to increase year-over-year, according to the 2025 State of Digital Operations Report from PagerDuty.

Image
PagerDuty

Source: PagerDuty

Survey results include:

  • 64% of respondents expect IT operations budgets to increase in 2025 to support continued investments in operational efficiency, resilience and excellence.
  • Enthusiasm for agentic AI is highest among CIOs and CTOs, with a majority (53%) viewing it as core to future IT operations.
  • Although automation has become more sophisticated and pervasive across all industries and regions, leaders cite two challenges as the top barriers to broader adoption: mitigating security risks and navigating a talent gap to ensure teams have the right skills and capabilities to drive and support automation across the organization.

In 2024, AI has evolved from a novelty technology to the cornerstone of modern IT operations. Survey respondents reported that they were experiencing the benefits of GenAI across many key performance indicators including:

  • Operational efficiency gains (37%)
  • Improved customer experiences (36%)
  • Better insights from data (38%)

Agentic AI is particularly poised to play a critical role within the next one to two years, with 88% of respondents viewing agentic AI to be either core or peripheral to future IT operations.

Looking ahead, cybersecurity is additionally expected to be a high priority in 2025. 71% of respondents expect an expansion of security and operations budgets in the next year, compared to only 14% who expect to see a consolidation. Security concerns are especially notable in industries that handle valuable intellectual property and emerging technologies. Media (95%) and tech (94%) companies report the highest priority for security. 

Methodology: The report is based on survey responses from more than 1,100 operations leaders across the North American, European, Middle Eastern, and African (EMEA) and Asia-Pacific and Japan (APJ) regions.

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CIOs and CTOs View Agentic AI as Core to Future IT Operations

Significant improvements in operational resilience, more effective use of automation and faster time to market are driving optimism about IT spending in 2025, with a majority of leaders expecting their budgets to increase year-over-year, according to the 2025 State of Digital Operations Report from PagerDuty.

Image
PagerDuty

Source: PagerDuty

Survey results include:

  • 64% of respondents expect IT operations budgets to increase in 2025 to support continued investments in operational efficiency, resilience and excellence.
  • Enthusiasm for agentic AI is highest among CIOs and CTOs, with a majority (53%) viewing it as core to future IT operations.
  • Although automation has become more sophisticated and pervasive across all industries and regions, leaders cite two challenges as the top barriers to broader adoption: mitigating security risks and navigating a talent gap to ensure teams have the right skills and capabilities to drive and support automation across the organization.

In 2024, AI has evolved from a novelty technology to the cornerstone of modern IT operations. Survey respondents reported that they were experiencing the benefits of GenAI across many key performance indicators including:

  • Operational efficiency gains (37%)
  • Improved customer experiences (36%)
  • Better insights from data (38%)

Agentic AI is particularly poised to play a critical role within the next one to two years, with 88% of respondents viewing agentic AI to be either core or peripheral to future IT operations.

Looking ahead, cybersecurity is additionally expected to be a high priority in 2025. 71% of respondents expect an expansion of security and operations budgets in the next year, compared to only 14% who expect to see a consolidation. Security concerns are especially notable in industries that handle valuable intellectual property and emerging technologies. Media (95%) and tech (94%) companies report the highest priority for security. 

Methodology: The report is based on survey responses from more than 1,100 operations leaders across the North American, European, Middle Eastern, and African (EMEA) and Asia-Pacific and Japan (APJ) regions.

Hot Topics

The Latest

From growing reliance on FinOps teams to the increasing attention on artificial intelligence (AI), and software licensing, the Flexera 2025 State of the Cloud Report digs into how organizations are improving cloud spend efficiency, while tackling the complexities of emerging technologies ...

Today, organizations are generating and processing more data than ever before. From training AI models to running complex analytics, massive datasets have become the backbone of innovation. However, as businesses embrace the cloud for its scalability and flexibility, a new challenge arises: managing the soaring costs of storing and processing this data ...

Despite the frustrations, every engineer we spoke with ultimately affirmed the value and power of OpenTelemetry. The "sucks" moments are often the flip side of its greatest strengths ... Part 2 of this blog covers the powerful advantages and breakthroughs — the "OTel Rocks" moments ...

OpenTelemetry (OTel) arrived with a grand promise: a unified, vendor-neutral standard for observability data (traces, metrics, logs) that would free engineers from vendor lock-in and provide deeper insights into complex systems ... No powerful technology comes without its challenges, and OpenTelemetry is no exception. The engineers we spoke with were frank about the friction points they've encountered ...

Enterprises are turning to AI-powered software platforms to make IT management more intelligent and ensure their systems and technology meet business needs for efficiency, lowers costs and innovation, according to new research from Information Services Group ...

The power of Kubernetes lies in its ability to orchestrate containerized applications with unparalleled efficiency. Yet, this power comes at a cost: the dynamic, distributed, and ephemeral nature of its architecture creates a monitoring challenge akin to tracking a constantly shifting, interconnected network of fleeting entities ... Due to the dynamic and complex nature of Kubernetes, monitoring poses a substantial challenge for DevOps and platform engineers. Here are the primary obstacles ...

The perception of IT has undergone a remarkable transformation in recent years. What was once viewed primarily as a cost center has transformed into a pivotal force driving business innovation and market leadership ... As someone who has witnessed and helped drive this evolution, it's become clear to me that the most successful organizations share a common thread: they've mastered the art of leveraging IT advancements to achieve measurable business outcomes ...

More than half (51%) of companies are already leveraging AI agents, according to the PagerDuty Agentic AI Survey. Agentic AI adoption is poised to accelerate faster than generative AI (GenAI) while reshaping automation and decision-making across industries ...

Image
Pagerduty

 

Real privacy protection thanks to technology and processes is often portrayed as too hard and too costly to implement. So the most common strategy is to do as little as possible just to conform to formal requirements of current and incoming regulations. This is a missed opportunity ...

The expanding use of AI is driving enterprise interest in data operations (DataOps) to orchestrate data integration and processing and improve data quality and validity, according to a new report from Information Services Group (ISG) ...