diff --git a/go.mod b/go.mod
index 2b3daf637..0c18d9e51 100644
--- a/go.mod
+++ b/go.mod
@@ -6,7 +6,7 @@ require (
 	github.com/Azure/azure-sdk-for-go/sdk/azcore v1.11.1
 	github.com/Azure/azure-sdk-for-go/sdk/azidentity v1.6.0
 	github.com/Azure/karpenter v0.2.0
-	github.com/crossplane/crossplane-runtime v0.20.1
+	github.com/crossplane/crossplane-runtime v1.16.0
 	github.com/evanphx/json-patch/v5 v5.9.0
 	github.com/go-logr/logr v1.4.2
 	github.com/google/go-cmp v0.6.0
diff --git a/go.sum b/go.sum
index ed130d06b..ceb28ae23 100644
--- a/go.sum
+++ b/go.sum
@@ -63,6 +63,8 @@ github.com/cespare/xxhash/v2 v2.3.0/go.mod h1:VGX0DQ3Q6kWi7AoAeZDth3/j3BFtOZR5XL
 github.com/cpuguy83/go-md2man/v2 v2.0.3/go.mod h1:tgQtvFlXSQOSOSIRvRPT7W67SCa46tRHOmNcaadrF8o=
 github.com/crossplane/crossplane-runtime v0.20.1 h1:xEYNL65wq3IA4NloSknH/n7F/GVKQd3QDpNWB4dFRks=
 github.com/crossplane/crossplane-runtime v0.20.1/go.mod h1:FuKIC8Mg8hE2gIAMyf2wCPkxkFPz+VnMQiYWBq1/p5A=
+github.com/crossplane/crossplane-runtime v1.16.0 h1:lz+l0wEB3qowdTmN7t0PZkfuNSvfOoEhQrEYFbYqMow=
+github.com/crossplane/crossplane-runtime v1.16.0/go.mod h1:Pz2tdGVMF6KDGzHZOkvKro0nKc8EzK0sb/nSA7pH4Dc=
 github.com/davecgh/go-spew v1.1.0/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
 github.com/davecgh/go-spew v1.1.1 h1:vj9j/u1bqnvCEfJOwUhtlOARqs3+rkHYY13jYWTU97c=
 github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=