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- 📉 CIOs brace for tech price hikes and project slowdowns amid tariff wave
📉 CIOs brace for tech price hikes and project slowdowns amid tariff wave
Tariffs Threaten IT Budgets, AI at Scale at BofA, New CIOs at Genworth and Ahold Delhaize
Zack Tembi
April 14, 2025
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Welcome to this week’s edition of CIOsurge!
This week:
New U.S. tariffs could cut global IT spending growth in half, prompting project delays and staffing shifts.
Bank of America scaled internal AI use to 90% of its workforce with a practical, governance-led strategy.
Genworth Financial and Ahold Delhaize USA appoint new CIOs to lead digital transformation and cybersecurity recovery.
Let’s make this week a game-changer.
Stay sharp. Stay ahead.
📉 CIOs brace for tech price hikes and project slowdowns amid tariff wave
New U.S. tariffs are expected to slash global IT spending growth in half—from 10% to 5%—as supply chains destabilize and hardware, software, and staffing costs surge. According to IDC, the inflationary impact will hit every sector of IT, delaying projects, halting hiring, and forcing CIOs to rely more heavily on contractors and consultants to maintain operations.
This is going to test our ability to plan, prioritize, and preserve momentum. A 5% growth cap in IT spend doesn’t mean demand is shrinking—it means we're going to be asked to do more with less, faster than ever. With AI adoption still surging, cutting innovation could cost more than the tariffs themselves.
Now’s the time to review contracts, renegotiate vendor terms, and shore up supply chain redundancies. We should also be mapping out contingency strategies for staffing—particularly if immigration policies tighten further. There’s no one-size-fits-all answer here, but reacting too slowly will cost us agility in the quarters to come.
- Zack Tembi
🏦 Bank of America scales AI with practical strategy and governance
Bank of America now has over 90% of its 213,000 employees using its internal AI assistant, Erica for Employees, part of a broader virtual assistant portfolio. The bank credits its success to a methodical AI rollout strategy focused on customer and employee needs, ongoing innovation sessions, and strong governance. AI use has already delivered a 50% drop in IT service calls and 20% coder efficiency gains.
This is a masterclass in scaling AI without falling into the hype trap. Bank of America didn’t chase the shiniest tools—they focused on real problems, built strong governance, and tied outcomes directly to business value. That’s what every CIO should be thinking about when justifying AI investments to the board.
The takeaway here isn’t just about chatbots—it’s about process. Innovation sessions, ROI tracking, and safety vetting aren’t just buzzwords—they’re how you move from pilot purgatory to enterprise impact. If you’re looking for a playbook on how to drive adoption while avoiding costly misfires, this is it.
- Zack Tembi
đź’¬ Zack's Take
🔑 Getting Real About Security: Proactive vs Reactive
A big mistake I still see CIOs and CISOs making is treating security as something you bolt on after building systems, rather than integrating it upfront. Too many organizations still wait for a breach or a compliance audit before getting serious—by then, it's too late. The damage isn't just financial; it's reputational, and that’s often harder to recover from.
Security today isn’t about just checking off boxes. It’s about proactively embedding security considerations into every stage of development and infrastructure design. When security is part of your foundation, you don’t just prevent breaches—you also gain operational efficiencies. Fixing vulnerabilities early saves time, money, and frustration down the line.
Companies that prioritize proactive security don’t just sleep better at night—they actually move faster. A secure foundation lets your teams innovate with confidence, without constantly worrying about breaking something critical. Ultimately, proactive security isn’t a cost center; it’s a strategic advantage that allows your business to innovate safely and efficiently.
🗞️ At A Glance
đź’ˇ CIO Spotlights
Genworth brings in Morris Taylor as CIO to lead digital push
Morris Taylor, former Capital One and Markel exec, has been named SVP and CIO of Genworth Financial to drive its tech strategy and digital transformation.
Taylor will partner across Genworth’s business lines to modernize infrastructure and support initiatives like the expanding CareScout network.
He aims to position tech as a growth driver and improve customer outcomes across the financial services firm.
Ann Dozier takes CIO helm at Ahold Delhaize USA after recent cyberattack
Ann Dozier joined Ahold Delhaize USA as CIO following a major cyber incident, bringing deep IT leadership from Southern Glazer’s and Coca-Cola.
She's now leading IT strategy across the company’s omnichannel grocery banners and supporting its 'Growing Together' transformation plan.
CEO JJ Fleeman praised her early impact and people-first approach to tech leadership.