IT operating models remain unfit for the AI era, CEOs say

Dive Brief:

• More than 7 in 10 CEOs believe their organization’s IT operating model is not fit for the age of AI as rigid frameworks hinder rapid adoption of the technology, according to a Gartner report published Monday. 
• Leaders listed rapid AI disruption, geopolitical volatility and the proliferation of AI throughout an organization among the key challenges for traditional IT operating models, with CIOs struggling to maintain oversight despite consistent expectation for them to do so.
• “A technology operating model defines how enterprise technology work gets done across distributed actors, aligning IT and business capabilities to deliver value, scale AI and sustain agility and resilience,” Gartner said in its report. 

Dive Insight:

Traditional IT operating models are becoming a liability as enterprises contend with AI adoption, distributed technology ownership and rising business expectations.

The analyst firm found only 24% of CIOs say their current model can effectively adapt to changing business needs. The result is a growing disconnect between the technology outcomes executives expect and the structures used to deliver them.

The mismatch is adding pressure to CIOs as they deal with pressure to make timely decisions, manage cybersecurity risks and remain competitive, according to an Experis report. Keeping up with the rapid pace of change was listed by nearly half of surveyed CIOs as a top hurdle.

Historically, IT operating models were designed around centralized control, predictable delivery cycles and clear ownership within the IT department. But AI initiatives, citizen development programs and business-led technology investments have dispersed technology decision-making across organizations.

Yet while CIOs increasingly lack oversight into how technology is built and deployed throughout a business, they still remain accountable for risk, resilience and value creation.

To respond, Gartner argues CIOs should move away from a traditional command-and-control approach and toward what it describes as a “technology operating model” focused on orchestration. Rather than treating technology as the responsibility of a single department, the model distributes ownership across IT teams, business leaders, external partners and AI-enabled systems.

The firm’s research also highlights significant changes in sourcing and workforce strategies.

Nearly nine in 10 IT managers expect AI to play a larger role in technology delivery, while 71% anticipate greater use of shared services. Gartner predicts organizations will increasingly substitute external labor with AI-enabled internal teams, shifting resources away from routine operational work and toward higher-value initiatives.

On governance, Gartner recommends embedding decision rights, accountability and guardrails directly into operating processes rather than relying on traditional centralized review structures.