<div id="readability-page-1"><div>Executives are shaping IT budgets for 2026, with artificial intelligence expected to be a key focus, according to a KeyBanc survey released Tuesday.Overall IT budgets are projected to grow 3.7% next year, but AI allocations are rising faster, reaching 4.7% of total budgets compared with 3.2% this year.Microsoft stands to benefit, with 91% of surveyed CIOs expecting to increase spending on its cloud and AI offerings. The company also leads in projected net budget increases. KeyBanc analyst Jackson Ader maintains an Overweight rating and a $630 target for Microsoft, which edged up 0.1% to $491.32 in Tuesday trading.On the other hand, Salesforce faces weaker demand for AI-enhanced customer-relationship tools. Only 36% of respondents expressed willingness to pay for AI features, down from 46% in the previous survey. Adoption of Salesforce's Agentforce AI platform remains low at 7%, compared with 76% for Microsoft's Copilot.Despite these challenges, Salesforce was named the top CRM vendor by 45% of respondents for H2 2025. The stock is 22% down year to date, and Microsoft is 18% up in 2025, making it ahead in the race.</div></div>

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A KeyBanc survey reveals that AI will be a key focus in 2026 IT budgets, with Microsoft benefiting from increased spending on its cloud and AI offerings. 91% of CIOs plan to boost spending on Microsoft, which leads in net budget increases. Analyst Jackson Ader maintains an Overweight rating and a $630 target for Microsoft. Salesforce faces weaker demand for AI tools, with only 36% willing to pay for AI features. Despite challenges, Salesforce remains the top CRM vendor for H2 2025.

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