ANZ Chief Information Officer Challenges: Artificial Intelligence, Cybersecurity & Data Analysis for 2025
Chief Information Officers throughout the public sector of Australia and New Zealand are encountering a “challenging 12 months” managing their technological systems amidst budget limitations, as per a distinguished Gartner analyst in the region. Nonetheless, there is hope that investments in AI will yield the efficiency improvements many envision.
Gartner recently disclosed the public sector discoveries from its Survey of CIO Technology Executives. The study revealed that 94% of government CIOs in ANZ identified data analysis as their primary technology investment for 2025, followed by investments in cybersecurity (91%) and application modernization (85%).
Dean Lacheca, a Gartner Vice President analyst, informed TechRepublic that there is a frugal mentality prevailing in government agencies. CIOs feeling “disheartened” are bracing for another year of relatively stable budgets when accounting for inflation, with minimal inclination for engaging in extensive ICT projects.
“Presently, we are possibly in one of the most financially constrained periods,” he remarked. “There is a realization that this won’t be a time of substantial, rapid adoption of technology.”
Enhanced Productivity Emerges as a Principal Goal for government CIOs
Lacheca mentioned that the emphasis on investments in data analysis and cybersecurity has been continuously observed in recent years. Nevertheless, this reflects sluggish advancement, with investments in these domains encountering impediments, such as keeping pace with the evolving threat vectors afflicting cybersecurity professionals.
“The Australian federal government has made commendable progress with their cybersecurity endeavors,” Lacheca observed. “However, if you scrutinize the Essential Eight and the transition towards the Essential Eight, progress is still … relatively gradual in that specific arena.”
SEE: Projected Primacy of Cybersecurity in Private Sector Tech Investment in Australia by 2025
The persistent focus on data analysis and cybersecurity is now being supplemented by an escalating yearning for “human capital efficiency,” as 94% of CIOs surveyed by Gartner prioritize productivity-driven outcomes, exhibiting a substantial rise from the previous year. The impetus for productivity materializes as IT and the remainder of the administration strive to enhance operational effectiveness.
“We witness a definitive dichotomy,” Lacheca added. “We observe continued funding for some high-profile government undertakings and modernization efforts; however, when we evaluate comprehensive IT investment across administrations, they [CIOs] have recently been significantly pressured.”
Government CIOs Recognize AI as One of their Principal Technologies
The Gartner study reveals that the highest three technologies ANZ government CIOs indicated they have implemented or intend to roll out in the subsequent 12 months are:
- Specialized cloud platforms for industries (59%).
- Generative AI (56%).
- Low-code/no-code platforms (53%).
Specialized Cloud Platforms for Industries
Lacheca elucidated that the prevalence of specialized cloud platforms for industries reflects a pivot towards adopting more standardized platforms across the public sector. Though there isn’t notably distinctive technology, such as more advanced industry-specific clouds for financial services, this transition fosters heightened uniformity across agencies.
SEE: Ascendency of Sovereign Clouds in APAC Region
AI and Generative AI
Lacheca remarked that the pronounced interest in AI witnessed in government stems predominantly from the expectation that it can aid in addressing the productivity requirements of agencies. However, after a period of exuberance surrounding generative AI, CIOs have adopted a more pragmatic approach towards tackling implementation challenges.
Although CIOs seek enhanced productivity through AI, Lacheca stated that their current role often involves that of a “risk mitigator” in that realm.
“They have to be the ones applying the brakes to that process, as they aim to ensure a balanced approach to risk,” he mentioned.
SEE: Potential Pitfalls of Generative AI for Technology Consumers
Low-Code and No-Code
According to Lacheca, there has been substantial growth in low-code technologies in recent times. He cited that the prime rationale behind this surge is that government CIOs are attempting to avert the errors of the past, which resulted in a “plethora of bespoke legacy technology,” creating a predicament they now need to address.
Low-code platforms can also support IT teams in bridging skill gaps, he stated: “Finding IT experts with proficiency in specific technologies is quite challenging. Therefore, they consider low code as a means to potentially bridge some skill gaps by leveraging their internal competencies.”
Continued Advocacy for the Value of IT by CIOs
In addition to managing technological risks (82%), the primary focus of CIOs is demonstrating the business value of IT in the administration (68%). Lacheca highlighted that government CIOs in ANZ are still endeavoring to alter the “corporate services-oriented mindset” stemming from IT’s history.
“They are constantly striving to educate or highlight the value they bring to the organization,” he remarked.
Gazing into 2025, Lacheca expressed his anticipation for a sustained transformation in the government’s perception regarding the actual costs of legacy technology. Anxieties surrounding substantial IT investments and projects often result in administrations “delaying the inevitable.”
“There has to be an acknowledgment of the responsibility involved in mitigating that risk and how it can be achieved in a manner that ushers in some of the productivity enhancements,” Lacheca elaborated. “There exists a compelling business justification for the benefits we could reap by divesting some of the legacy [technology] assets we currently maintain.”
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