Real AI Disruption Is Happening Below the Surface
AI
Real AI Disruption Is Happening Below the Surface
When we asked CIOs at the 2025 Gartner® CIO & IT Executive Conference Dubai expo where AI is driving the biggest shifts in their IT agenda, the responses were:
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- 27% – Governance, security, and compliance
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- 23% – Delivery models
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- 18% – Budgets and costs
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- 17% – Team size and skills
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- 10% – Strategy and planning cycles
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- 4% – Vendor contracts
Let’s break down what these numbers actually mean.
4-minute read
Governance, delivery, and budget seem to be the primary focus of the conversation. And understandably so. They’re visible, measurable, and mission-critical.
But the remaining overlooked categories also point to deeper structural transformations that may very well shape how IT organizations actually operate.
1. Strategy and planning cycles – Leading without a map
10% picked strategy cycles. However, agility here determines success everywhere else.
Since rigid planning frameworks often fail under AI’s constant velocity, CIOs should:
- Shorten horizons. Replace annual plans with 90-day sensing loops and adaptive prioritization.
- Anchor around signals. Use leading indicators, like model drift, adoption rates, and user behavior, to guide investments.
- Institutionalize learning. Build feedback cadences where experimentation informs governance, not the other way around.
Read more: Walking Through AI Disruption With a Blindfold →
2. Team size and skills – The compression effect
17% picked team changes but that’s where the next set of experiments may start. As AI augments what individuals can produce, efficiency shifts from coordination to capability. The “one-man show” model captures that potential through smaller, hybrid teams:
- Collapse role silos. Pair small cross-functional squads with AI agents that automate testing, documentation, and integration.
- Hire for orchestration, not repetition. Prioritize developers who understand both architecture and AI-assisted tooling.
- Redefine expertise. Think generalist in code, specialist in domain; a mix that speeds iteration without losing depth.
Read more: The One-Man Show Model →
3. Vendor contracts – Rethinking the economic engine of IT
4% picked vendor contracts, yet this is where many AI initiatives fail to take off.
Traditional fixed-cost models assume predictability. AI introduces speed and constant change.
CIOs can take early control by:
- Moving from fixed scope to flexible scope. Shift to time-and-materials or outcome-based models that account for evolving model outputs and rapid iteration.
- Redefining value realization. Tie vendor performance to measurable AI productivity gains, not just delivery milestones.
- Building contractual flexibility. Include provisions for model updates, retraining cycles, and evolving delivery scope.
Read more: Software Contract in the AI Era →
Look past the majority
Everyone’s protecting what they can’t yet predict. That’s why governance, security, and compliance got the most votes. But that’s a surface-level reaction.
The bottom three categories (contracts, skills, and strategy) define whether AI becomes a controlled experiment or a competitive advantage for enterprises seeking to sustain transformation.
CIOs who rewire these underlying systems now will spend less time managing disruption and more time capitalizing on it.
CME Offshore CEO
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