Logicalis APAC 2026 CIO Report: CIOs navigate surging AI investment amidst growing governance concerns

APAC, Feb 27, 2026

  • 94% of CIOs increase AI spend, yet half say adoption is too fast
  • Two-thirds of CIOs don’t believe they can scale AI beyond initial deployments
  • 59% report compromising on governance due to limited knowledge
  • Just 35% of CIOs are confident their organisation actively manages AI’s environmental impact

4 March 2026: Logicalis Asia Pacific, today reveals that organisations are racing to invest in AI faster than they can manage it. According to its annual CIO Report, which surveyed over 300 CIOs across Asia Pacific, a gap is emerging between ambition and operational readiness, with governance, skills and infrastructure struggling to keep pace.

Most organisations (94%) report an increased appetite for AI investment over the past year, yet the structure to support that ambition is lagging. More than half believe AI adoption is already moving too fast, and an overwhelming 95% describe their organisation’s current approach as "learning as we go."  

While there is early evidence that AI delivers, two-thirds of CIOs don’t believe they can scale AI beyond initial deployments. The most frequently cited constraint is not funding, but skills. 91% cite a lack of internal technical capability alongside data challenges as the biggest barriers to adopting AI.  

However, structural frameworks are also a significant challenge. While most CIOs use AI governance controls to some extent, 59% report compromising on governance due to limited knowledge and just 44% say they fully grasp the risks of AI adoption.  

Tension between early success and scaling challenges is compounded by broader nervousness about the AI market itself, with 75% concerned about an "AI bubble." A further 15% say they lack continuity plans should a key AI provider become unavailable, a reminder that organisations are building dependencies on these platforms.

Layered onto these challenges is an emerging sustainability dimension that few organisations are ready for. As AI workloads grow, so does their energy footprint. Just 35% of CIOs are extremely confident their organisation actively manages AI’s environmental impact, and only 39% express the same level of confidence that energy efficiency is prioritised in AI deployment.

Logicalis APAC CEO, Lee Chong-Win said:


Our APAC CIO report highlights that while AI investment is accelerating, more than half of CIOs feel adoption is moving too quickly, leading to compromises on governance. As AI becomes integral to operations, APAC organisations must address these foundational risks and put in place responsible AI practices, to ensure innovation in the region remains trusted and reliable. Those that act now will be positioned well to harness the region’s fastmoving AI market and lead the next wave of digital innovation.

Faced with this mandate, it’s no surprise that 95% plan to lean on Managed Service Providers over the next two to three years to help navigate AI governance, scaling and sustainability. This shifts the CIO’s relationship with technology from direct ownership to orchestration, delivering the depth of expertise the pace of AI demands.

To see the full report head to https://www.ap.logicalis.com/cio-report 

About the research

At the end of 2025, Logicalis commissioned independent market research specialist Vanson Bourne to do a survey. Vanson Bourne interviewed 1,000 Business and IT professionals across EMEA, APAC, US and South America. The APAC report is compiled from a subset of that data with 300+ respondents across the region. Only respondents with over 250 employees with involvement in digital transformation and cloud computing within their organisations were interviewed.  

About Logicalis

We are Architects of Change™. We help organisations succeed in a digital-first world. At Logicalis, we harness our collective technology expertise to help our clients build a blueprint for success, so they can deliver sustainable outcomes that matter.

Our lifecycle services across cloud, connectivity, collaboration and security are designed to help optimise operations, reduce risk and empower employees.

As a global technology service provider, we deliver next-generation digital managed services, to provide our clients with real-time visibility and actionable insights across the performance of their digital ecosystem including reliability, user experience, security, economic performance and sustainability.  

Our 7000+ ‘Architects of Change’ are based in 30 territories around the globe, helping our 10,000+ clients across a range of industry sectors, create sustainable outcomes through technology.

Logicalis has annualised revenues of $1.63 billion, from operations in Europe, North America, Latin America, Asia Pacific, and Africa. It is a division of Datatec Limited, listed on the Johannesburg Stock Exchange, with revenues of over $3.6 billion.

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