- Microsoft remains the leading choice for CIOs considering a generative artificial intelligence (AI) partner, significantly outpacing Alphabet and Amazon, as revealed by Citigroup analysts.
- It is noted that IT budget projections have been increasing, especially in the US, following the recent CIO survey.
- Key priorities for CIOs include Data Analytics/Gen AI – this is beneficial for companies like MSFT, ESTC, SNOW, MDB, AYX and TDC.
- Additionally, digital transformation projects continue to rank high in priority, even though the importance has lesser as compared to September.
- In relation to funding of GenAI projects, a majority of CIOs anticipate obtaining new or extra funding, and a section believe it will be retrieved from existing resources.
Microsoft Tops AI Partnership Considerations
Analysts at Citigroup affirmed on Monday that Microsoft still retains the position of leading vendor that CIOs are mulling over to partner with for generative artificial intelligence (AI), too far ahead from Alphabet and Amazon.
Improved IT Budget Outlooks
Post conducting its recent CIO survey, the bank commented that IT budget scenarios are getting better, led predominantly by the US.
Data Analytics and Gen AI Take Spotlight
As revealed by Citi, “Data Analytics and Gen AI are ranked as second highest priority for CIOs in the recent December survey. This is clearly a positive indication for companies like MSFT, ESTC, SNOW, MDB, AYX and TDC.”
Importance of Digital Transformation Projects
Also, Microsoft is benefiting from the fact that digital transformation projects are continuing to hold a spot in the top three priorities, even though their significance has relatively lessened compared to September.
GenAI Projects Funding Breakdown
Citigroup added, “In regard to the funding division of GenAI projects, 64% of CIOs predict to acquire new/additional funding. On the other hand, 36% are of the opinion that it will be sourced from existing resources. Some CIOs are planning to reduce their spending on vendors like ORCL, IBM or SAP to make provision for GenAI investments.”
In connection to forex and trading, these developments within the IT Biz sector may affect the stock performance of relevant firms like Microsoft, Alphabet or Amazon, providing potential investment opportunities.