Telarus Report: AI Tops IT Investment Driven by Mid-Market Interest

Business interest in artificial intelligence and its implementation continues to grow, as 58 percent of IT buyers indicate AI is their top investment priority this year. That number is up 6 percent from last year and ballooned from 13 percent in 2023, according to the third annual Tech Trends Report released by Telarus, a global TSD.

Much of the momentum appears to stem from mid-market companies compared to enterprises. In fact, 92 percent of mid-market organizations expected their IT budgets to increase this year, with the bulk of the spending targeted at software rather than headcount. While this represents a valuable opportunity for technology advisors, just 13 percent of TAs indicated they felt “very prepared” to sell AI-powered solutions.

The trends report includes insight from nearly 400 IT buyers and more than 450 technology advisors from research administered in May by Constellation Research and Redpoint. The annual publication is designed to help guide advisor selling strategies in the year ahead, Telarus officials said.

The 2025-26 edition presents the latest opportunities around AI and shifting IT buyer needs, while also highlighting differences between enterprise and mid-market strategies. It offers insight to the top-selling technologies in the channel, along with actionable recommendations.

“The Tech Trends Report was created to give our advisors an edge. This year’s findings don’t just track where IT dollars are going—they spotlight where advisors can lead the conversation, deliver clarity in the chaos of AI adoption, and prove their value as strategic growth partners,” said Adam Edwards, Telarus CEO.

In addition to AI, traditional technologies remain in high demand. Buyers continue to prioritize platforms that improve communication, security and performance, with the top revenue generators including UCaaS (73 percent), networking (66 percent) and cybersecurity (53 percent).

Though about one-third of IT buyers at the enterprise level said they were interested in working with tech advisors to help guide them through complex technology decisions, that number jumps to 96 percent of mid-market respondents.

“Our research shows that mid-market companies are seizing AI as a competitive equalizer, adopting it fast to catch up with many of their enterprise counterparts,” said R “Ray” Wang, CEO and founder of Constellation Research. “For advisors, that creates a once-in-a-decade opening to guide organizations that are experimenting aggressively but need trusted expertise to translate hype into real outcomes. Advisors who lean in now—connecting AI with security, cloud and communications—will be positioned at the center of their clients’ most critical decisions.”

The full report can be accessed for free from the Telarus website.