As generative AI handles repetitive duties, employees can focus on strategic initiatives that drive innovation.

AI tops cybersecurity spending in 2025 budgets


As AI handles repetitive duties, employees can focus on strategic initiatives that drive innovation

Key points:

Generative AI tools are taking precedence in 2025 budgets, and chief AI officers are standing out as important leaders in the workplace, according to the Amazon Web Services (AWS) Generative AI Adoption Index.

The report highlights the defining features of the generative AI wave and offers key insights for corporate leaders and policymakers on how to effectively leverage its potential.

Key findings include:

1. Generative AI tops security spending in 2025–45 percent of surveyed IT decision makers said generative AI tools are their top budget priority in 2025, over other IT spending categories like security tools (30 percent). When adopting generative AI solutions, ease of integration is key for most organizations. Other leaders value advanced capabilities (56 percent) and robust privacy and security features (48 percent).

2. Chief AI Officers (CAIOs) are becoming essential leadership figures as organizations accelerate the centralization of AI oversight. Currently, 60 percent have already appointed CAIOs, with an additional 26 percent planning to do so by 2026. This trend reflects a strong commitment at the executive level; however, change management continues to pose a challenge–nearly 25 percent of organizations are expected to lack formal transformation strategies by 2026.

3. Organizations are moving rapidly from experimentation to full integration of generative AI. Although 90 percent now use generative AI tools, only 44 percent have progressed from initial testing to production deployment. In 2024, organizations ran an average of 45 AI experiments, yet only 20 are expected to reach end-users by 2025–underscoring the ongoing challenges in scaling and implementation.

4. In 2025, organizations are addressing the generative AI talent gap through a dual approach: upskilling existing employees and hiring new talent. To support AI deployment, 56 percent have already implemented training programs, with another 19 percent planning to follow suit. However, nearly half report that a lack of clarity around employees’ training needs is limiting the development of effective programs. As a result, organizations are ramping up recruitment efforts–92 percent plan to hire AI-skilled professionals in 2025.

5. Organizations are embracing hybrid build-and-buy strategies for AI adoption. Instead of building solutions from the ground up, most are tailoring existing AI models to suit their specific workflows and data. Industry approaches differ widely–particularly in financial services, where 44 percent of firms plan to rely on out-of-the-box solutions, signaling a shift from traditional custom development. Third-party vendors are playing an increasingly vital role, with 65 percent of organizations planning to collaborate with external partners for deployment.

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Laura Ascione