17 IT Issues CIOs Are Facing in 2025

Posted: November 19, 2024

Last Update: December 5, 2024

In 2025, Chief Information Officers, ITSM (IT Service Management) leaders, and cybersecurity chiefs will continue to face a growing range of challenges.

IT Issues

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From the advances in Artificial Intelligence (AI) to outdated hardware, poor strategic planning and spending, cloud confusion, and new cyber threats, the numbers of IT issues are multiplying. In this article, reviewed and updated for 2025, we examine the top 17 IT issues that many CIOs and IT leaders are saying they are struggling with, and what can be done to resolve these issues.

Let's dive into some of the most relevant, recurring, and new IT issues for 2025. . .

Top 17 IT Issues in 2025

Ineffective IT Strategy

Have you reviewed your IT strategy recently? Does it still align with operational and business needs, and the tech stack you use to implement it?

If not, then 2025 is the year to update your IT strategy and ensure that everything your organization uses to run critical IT systems is up-to-date, relevant, and generating a Return On Investment (ROI).
AI Expansion and Generative AI

AI Expansion, specifically Generative AI, has progressed far past the experimental phase and become a core component of business strategy. Tech leaders are now challenged with implementing AI across multiple departments in order to achieve significant improvements, while using fewer resources. These AI tools are being used to:
- Automate routine tasks
- Streamline work processes for increased efficiency
- Address complex challenges that require creative problem-solving
AI is happening now, so 2025 is the year to research and implement AI tools for your organization's continued success.
Computer Performance Not Keeping Up with AI Advances

AI is getting smarter, faster, and increasingly integrated with IT systems, software, and hardware. Can your in-house systems and computers keep up?

Although most AI software (such as ChatGPT, Perplexity, and others) is cloud-based, you still need on-site servers and computers running fast enough to keep up with AI advances. Once AI-based systems require hyper-fast supercomputers to operate, then organizations everywhere will need serious hardware updates.
Cloud Cost Optimization

More and more companies are using cloud computing and SaaS apps, but it's also creating a headache for tech leaders when it comes to managing costs. If they're not careful, cloud expenses can get out of hand very quickly. To tackle this, tech bosses need to come up with smart ways to keep cloud costs in check. This means:
- Finding the best deals
- Combining different cloud services where it makes sense
- Making sure the company is getting the most bang for its buck from its cloud investments
IT leaders need to be savvy with cloud spending to avoid unplanned surprises on the bill at the end of the month.
Cloud Confusion

So many organizations have invested huge sums in various cloud software and storage. The question is, what and how much do you actually need?

Review what's being stored where, the apps every team is using, and whether there's overlap and unnecessary costs hidden in the system. There's a good chance there's more money being spent than your organization actually needs. Work at consolidating, reducing confusion, and simplifying your layers of cloud-based software.
Outdated Technology and Legacy Systems

Outdated technology and legacy systems are an increasing hindrance in modern, lean organizations. Now is the time to assess whether legacy tech and systems are still fit for purpose. If not, what can be done to replace them before they start to seriously impact security and productivity.
Struggles with Hardware Failures

Hardware doesn't last forever. Sooner or later, IT hardware reaches the end of the lifecycle of a product and needs replacing. Many CIOs have been pouring money into software subscriptions (SaaS), which means hardware has taken a back seat for IT leaders.

And yet, once hardware starts to fail it's time to think about replacing it. This could mean your computers and employee laptops are outdated, or on-site servers need replacing. Have you budgeted for new IT capital expenditures?

Resolving this means looking at where the smartest investments can be made and making a business case for new hardware budgets. A business can only run so long on short-term repairs and spare parts.
Software Compatibility Issues

Too much software can cause compatibility issues. Especially when various apps and systems don't talk to one another, or when a new SaaS tool doesn't work with a vital piece of legacy software.

Look at ways you can fix this. Whether that means ditching a legacy SaaS for a new one, or having APIs developed to ensure data flows smoothly and goes where it's needed within your organization.
Not Enough Backup for Business Continuity and Cybersecurity Threats

IT downtime is expensive. Cybersecurity analysts estimate the average cost of a cyberattack can range from $25,000 to $3 million, and that is just for small to medium size businesses! In some cases, that's more than enough to force closure. On average it can cost mid-size and larger organizations $4.45 million.

One of the best ways to guard against this is with secure automated backup systems. In the event of an IT disaster, they are designed to ensure business continuity. Do you have data backup and business continuity plans in place and ready to deploy at a moment's notice?

If not, then now is the time to get organized in case anything happens that could cost your organization serious money and expensive downtime.
Weak IT Security, Especially Against AI-Based Cyberthreats

In 2025, IT leaders will be fighting all of the usual cybersecurity threats, and now with AI rapidly gaining steam, there are additional threats to guard against, like AI-powered cyberattacks in the form of personalized phishing attacks, deepfakes, malicious GPT, and more, to compromise security or deceive companies out of millions of dollars.

Is your IT security and employee training able to combat deepfakes and AI's?

How would your staff react if a video call made it seem that a large invoice hadn't been paid and a senior leader was telling them to pay it?

That's what IT and cybersecurity leaders are up against these days. Take the time to properly understand modern threats and design cybersecurity systems and employee awareness training to safeguard against them.
Access Control Being a Serious Cybersecurity Problem

One of the biggest issues when it comes to access control is employees using their own devices for work-related apps, storage, and software. Another is high employee turnover and working with freelancers and contractors.

Everyone with access to internal systems, email accounts, and cloud storage is a potential cybersecurity threat. Access control is designed to reduce these risks. And yet, not enough organizations have sufficient control over this area. This can result in data theft, data leaks, and cybersecurity breaches.

Use 2025 to get access control under control, or risk hundreds of thousands of dollars in costs from unexpected data breaches, regulatory fines, and a loss of customer confidence.
Poor Password Management

Poor password management is an avoidable IT issue. Set up admin systems so that employees can't use weak or the same passwords for multiple apps. Provide self-serve tools to help staff with this, and extra training, as required.
Increased Risk of Data Loss

Losing data is an IT issue that every CIO and ITSM leader worries about. Whether it's customer data or important company documents and databases, the world runs on data, and it needs to be secure and accessible at all times.

Having efficient data backup and storage policy processes and systems is the best way to reduce worries about losing valuable data.
Privacy and Data Protection Issues

Data protection is even more complicated with so many more employees working remotely or from home these days, as well as issues with shadow IT, employee misuse of data or misplaced/unsecured devices which can be stolen. Internal and customer data is being transmitted across the Internet and Wi-Fi.

One of the best ways to safeguard this is to ensure that remote/WFH staff are logging-in via a secure Virtual Private Network (VPN) before they can access any internal systems, email, Slack, and customer databases. Other safeguards can be installing current security software, using encryption or anonymity for confidential files, better password management, as mentioned above, and using multi-factor authentication for login processes.
Compliance with Regulations

At some point, every organization faces regulatory compliance challenges. Especially in sectors such as healthcare, finance, education, government, etc. Make sure every piece of software you use is compliant with regulators in your sector. Otherwise, you risk regulatory fines and non-compliance issues.
Data Governance for AI

Effective data governance has become increasingly more critical as businesses rely on data for decision-making and AI applications.

It is the responsibility of the CIO to have guidelines in place in order to protect the security, quality and compliance of data, which is very important for the success of AI and analytics programs. This includes promoting data literacy and effective data management practices across the organization.
New Technology Integration

Before commissioning any new software or signing up for a new SaaS tool, do you know whether it will integrate with the systems you already use? It should be easy enough to check this.

For example, does it have APIs (Application Programming Interfaces) and plugins that will ensure it integrates with other software and SaaS tools? If so, then have a free trial to make sure everything works smoothly as required.

IT leaders and CIOs need to take advantage of exciting new change management opportunities to ensure they're not left behind in 2025.

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How to Prepare for 2025's IT Issues

There are a number of ways IT leaders can overcome numerous common IT problems in 2025, including:

Stress test your IT cybersecurity and staff training to ensure they're prepared for new cybersecurity threats, especially AI-based ones and deepfake videos.
Be sure to implement self serve and knowledge management to provide information and training for employees. This will equip them in combatting loose access controls, weak password management, and data loss, as well as meeting regulation compliance, and privacy protection guidelines.
Review your current tech stack, apps, and cloud storage. Does your organization need everything you've budgeted for? There's a good chance you can consolidate and upgrade to software that will do a more effective and efficient job.
Be sure your asset management program is kept current to track all hardware lifecycles and any changes in the industry trajectory for critical and timely capital expenditure budgeting.
Review your IT strategy and backup systems/business continuity planning. If that's not fit for purpose then spend time in 2025 to future-proof your IT operations to ensure it's equipped for another decade.