State of IT Report 2025: Security and AI Drive Growth Despite Economic Pressures

Organizations are betting big on technology for 2025, with artificial intelligence (AI) and cybersecurity leading investment priorities despite ongoing economic pressures. Spiceworks' 2025 State of IT report reveals that nearly two-thirds of companies plan to increase their IT budgets, while only a tiny fraction expects cuts.

The comprehensive study, which surveyed 8,800 IT professionals, paints a picture of an industry in transformation, where emerging technologies are gaining mainstream adoption even as organizations grapple with inflation and talent shortages.

Key findings from Spiceworks' 13th annual State of IT report include:

• 64% of companies plan to increase IT budgets, with only 4% planning decreases.

• Overall IT spending is expected to grow 9% year-over-year.

• AI adoption jumped from 25% to 40% in one year.

• 36% of IT professionals plan to seek new jobs in 2025.

• Organizations are open to switching vendors for 59% of their current technologies.

"Over the last two years, AI has been perhaps the hottest buzzword in tech," Peter Tsai, head of technology insights at Spiceworks, told ITPro Today. "With hyped business technologies, data can reveal if initial enthusiasm matches reality over time, and often it doesn't."

Tsai noted that with AI, companies are actually following through on optimistic adoption and investment plans.

Related:ITPro Today’s 2024 IT Priorities Report

According to Spiceworks' data:

Technology Investment and Adoption

Despite 46% of businesses expressing concerns about rising product costs, the commitment to technology investment remains strong. Organizations are prioritizing security, infrastructure updates, and strategic IT projects, with inflation driving budget increases in 45% of organizations — more than double the rate seen in 2022.

AI emerged as a particular focus, with 74% of organizations reporting AI investments as worthwhile. However, specific applications received mixed reviews. Only 56% found ChatGPT valuable for information retrieval, while just 51% supported AI-powered internal chatbots.

Shifting Vendor Relationships Signal Market Evolution

A noteworthy trend is emerging in technology partnership dynamics, with businesses showing flexibility in their vendor relationships.

Organizations indicate openness to changing providers for nearly 60% of their current technologies, suggesting a market where vendor performance and value proposition are under constant scrutiny. This suggests a significant opportunity for vendors who can demonstrate clear value, but also presents risks for incumbent providers.

Related:ITPro Today’s 2024 IT Priorities Report

Budget Disparities Reveal Organizational Tensions

One of the most striking revelations from the report highlights a significant disconnect between organizational layers regarding IT resource allocation. 

While executive leadership maintains an optimistic view of technology spending, frontline IT staff express considerable concern about budget adequacy. The data shows that 54% of IT staff believe their organization's technology spending falls short of requirements, standing in stark contrast to just 19% of IT managers and 15% of senior leaders who share this view. 

Tsai commented that many in-the-trenches IT professionals are facing monetary and workplace pressures even as 57% of senior leaders believe it's difficult to hire skilled IT talent. In addition to being more likely to believe that IT budgets — which include IT labor expenses — are insufficient, IT staff are 2x more likely to be concerned about wages not keeping up with the cost of living and teams being asked to do more with less than is senior management (director titles or higher). 

In 2025, 36% of IT professionals plan to seek a new job, with that figure jumping to 52% of Gen Z IT professionals. According to prior Spiceworks research, two of the primary reasons workers seek new roles are for a higher salary or opportunities for career growth, so IT managers should keep these factors in mind if retention of key talent is a priority in 2025.

"Senior managers often think about technology budgets in terms of return on investment, including efficiencies gained, processes improved, and risk avoided," Tsai said. "But they should also think about the crucial human element — no modern company can function without the support of IT professionals."