GenAI remains a key CIO priority with Microsoft best positioned: survey

Investing.com -- Generative AI (GenAI) is a key focus for Chief Information Officers (CIOs), with Microsoft (NASDAQ:MSFT ) remaining “best positioned” in the space, according to Morgan Stanley’s latest 3Q24 CIO survey.

As workloads increasingly shift to the cloud, Microsoft is not only well-positioned to capture significant market share but is also expected to dominate GenAI spending.

“53% of CIOs expect Microsoft to gain the largest incremental share of GenAI spend in 2024,” the report highlights, with the next closest competitor trailing far behind at just 5%.

The survey reflects a broader trend among CIOs, with AI and machine learning consistently topping the list of priorities for the fourth consecutive quarter. The importance of GenAI has grown significantly, impacting investment strategies across the board. In fact, 78% of CIOs report that innovations in AI and large language models (LLMs) have directly influenced their investment decisions, a sharp increase from previous quarters.

“Importantly, hyperscalers remain the favored vendor group for CIOs in assisting to apply AI, LLM's, and other innovative technologies. And critically, Microsoft is in the leadership position,” Morgan Stanley analysts noted.

This dominance is driven by several factors, including its strong alignment with key secular trends, the broad scope of its product offerings, and its ability to leverage consumption pricing models via Azure.

These advantages translate into real financial gains, as Microsoft continues to expand its lead as the top IT budget share gainer, with a net +49% expecting share gains, up from +45% in our prior survey.

Over the next three years, 44% of CIOs expect Microsoft to maintain its dominance in GenAI, further solidifying its leadership position.

Moreover, Microsoft is seen as the fastest-growing hyperscaler in public cloud spend. Despite some deceleration in growth across cloud platforms, the company’s Azure platform remains the CIOs’ favorite for public cloud investments in 2024.

Source: Investing.com