Microsoft Remains Top AI Vendor as IT Budgets Rebound, Citi Survey Finds

Microsoft continues to dominate as the top vendor for planned artificial intelligence spending, according to a second-quarter survey of chief information officers by Citi, which also found a notable rebound in overall IT budget growth expectations.

IT Spending Outlook Improves

The survey of 100 IT decision makers revealed that expectations for IT budget growth over the next twelve months rose to 3.3%, up from 2.6% in the March 2026 survey. Citi noted this projection is 0.8 percentage points above the seven-year historical average, signaling a clear improvement in the spending environment.

This acceleration was observed across regions, according to the report:

• EMEA: IT budget growth expectations rose 0.8 percentage points to 3.9%.
• U.S.: Budget growth expectations increased 0.6 percentage points to 3.0%.

Microsoft Extends AI Lead

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When CIOs were asked which vendors they are considering for increased AI spending, Microsoft was the most cited, followed by Amazon and Google. The findings reinforce Microsoft's strong position in the enterprise AI market.

In contrast, the survey also identified vendors most frequently mentioned for potential AI-related spending cuts. This group included Cisco, Dell, IBM, and ServiceNow.

AI's Growing Impact on Budgets and Jobs

Data analytics and AI remained the top investment priority for respondents and continued to gain share, followed by cybersecurity and digital transformation, Citi said. The bank estimates that AI currently represents about 6.5% of total IT budgets.

While 69% of AI funding comes from new or additional sources, this is down from 73% in the prior survey, suggesting a slight increase in funding reallocation from other areas. The survey also highlighted AI's growing influence on the workforce, with 50% of CIOs expecting AI to drive headcount reductions in the next six to 12 months, up from 47% previously.