US Lodging and REITs: Citi’s 2026 CIO Survey: AI Adoption Implications on Office REITs

Research evidence excerpt

US Lodging and REITs: Citi’s 2026 CIO Survey: AI Adoption Implications on Office REITs

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09 Jul 2026 16:39:56 ET │ 10 pages

US Lodging and REITs

Citi’s 2Q26 CIO Survey: AI Adoption Implications on Office REITs

CITI'S TAKE

Citi’s Global Tech & Communications team published its quarterly 2Q26

CIO Survey (n=100) and the results continue to suggest that AI-driven

productivity gains could potentially reduce labor needs across enterprises

(link). CIOs are increasingly expecting efficiency gains to translate into Seth Bergey, CPA, CFA

lower headcount, raising important longer-term implications for +1-212-816-2066

office-using employment. Notably, expectations for headcount reduction seth.bergey@citi.com

moderated modestly this quarter, with a slight decline in both the

Nick JosephAC percentage of CIOs anticipating headcount reductions and the magnitude

of the impact. +1-212-816-1909

nicholas.joseph@citi.com

Lauren R McNicholAccording to Citi’s 2Q26 Global CIO Survey, 56% of CIOs expect Generative AI

+1-215-854-6039initiatives to reduce overall headcount, a slight decrease from the prior quarter

lauren.rose.mcnichol@citi.com

(59%) and higher than a year ago (51%). Of those who answered yes, average

headcount reductions are expected to be ~7%, which is down from 8% in the prior

survey. Half (50%) of respondents anticipate the impact materializing over 6-12

months, with another third (36%) expecting the impact within 1-2 years, which is a

shift to the near-term versus last survey. We note this survey does not capture any

impact of AI-related hiring, which could partially offset potential headcount

reductions.

Financial Services/Insurance (29%) and Technology/Internet (21%) represent the

largest share of CIOs expecting AI-driven headcount reductions, exceeding their