Organizations are projecting average returns of $2.78 for every dollar invested, according to the Lenovo Europe & Middle East CIO Playbook 2026 with research insights by IDC.

The research, drawing on insights from 800 IT and business decision makers, shows 93% plan to increase AI investments in the next 12 months at an average spending growth rate of 10%. However, while 57% of organizations are approaching or in late-stage AI adoption, only 27% have a comprehensive AI governance framework in place.

Agentic AI has overtaken Generative AI as the top priority for CIOs in 2026, with 65% of organizations focused on scaling it across operations within 12 months. Currently, only 16% report significant usage today, with the majority still piloting or exploring use cases. "We're now seeing clear returns from the AI pilots and proof-of-concepts organizations have invested in," said Matt Dobrodziej, President of Europe, Lenovo. "But many are not fully equipped with the skills, governance and readiness needed to scale AI to its full potential."

Hybrid AI has emerged as the preferred deployment model, favoured by 58% of organizations as they balance innovation with data sovereignty and operational control. The research shows real-world business considerations are driving this shift, with factors such as data privacy, security requirements, and infrastructure customization needs influencing adoption.

AI adoption is progressing at different speeds across the region. Advanced markets such as Scandinavia, Italy, and the UK are moving beyond pilots, while parts of Southern and Eastern Europe remain in earlier stages. The Middle East is emerging as a fast-moving growth market, showing strong adoption momentum and increased interest in agentic AI.