Global technology investment is expected to accelerate through 2026 as enterprises shift from experimental digital spending to structured, outcome-driven modernization programs, according to industry leaders.
At the same time, India’s Union Budget 2026 is being seen as a critical policy lever to strengthen the country’s ambition of becoming a global AI leader, particularly in the financial sector.
CIO Budgets Shift Toward Outcome-Driven Modernization
Piyush Goel, Founder and CEO of Beyond Key, said global organizations are realigning technology budgets to prioritize measurable business value, resilience, and compliance-ready innovation.
“Looking ahead to 2026, we estimate global tech investment to rise as organizations prioritize digital transformation, data-driven decisioning, and AI-powered automation,” Goel said. He added that CIOs are expected to allocate nearly 15–18% more than last year toward modernization initiatives focused on performance, customer experience, and secure cloud-native ecosystems.
According to Goel, enterprises are increasingly moving away from pilot-driven spending toward integrated platforms that deliver predictable ROI. This trend, he noted, favors vendors that combine deep technical expertise with strategic advisory capabilities, helping organizations translate digital investments into long-term value.
Budget 2026 Seen As Catalyst For India’s AI Leadership
From a policy perspective, expectations are mounting that Budget 2026 will play a defining role in strengthening India’s AI ecosystem, especially within banking and financial services. Vishal Maru, Global Processing Head at Financial Software and Systems (FSS), emphasized the need for safe, secure, and indigenous AI development.
Maru highlighted government projections that AI could contribute up to $1.7 trillion to India’s economy by 2035, with financial services among the biggest beneficiaries. However, he pointed out that while AI adoption is widespread, innovation maturity remains limited, with most foundational models still sourced externally.
Focus On Indigenous Models, Infrastructure, And Governance
Maru said Budget 2026 should prioritize native AI model development, domestic computing infrastructure, and stronger AI governance frameworks to address rising cyber and fraud risks. Increased funding for initiatives such as the IndiaAI Mission, along with R&D incentives like grants and tax credits, could accelerate this transition.
He added that industry-specific AI governance and privacy-first data systems will be essential to ensure trust and responsible innovation. A balanced policy approach, Maru said, would help India move from being an AI adopter to a global AI creator in financial services.
