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Fast-Tracking AI Adoption a Top Business Priority: Trends Study
Most business leaders concerned about losing competitive ground without rapid AI adoption
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Mid-market organizations are keen to embrace AI and expect to receive four-fold returns on their investments within 12 months, a new report commissioned by leading Microsoft expert Avanade has found.
The findings were published in the Avanade Trendlines: AI Value Report 2025. It includes information from 4,100 business and IT decision-makers on the mid-market's journey with AI and emerging technologies. The organizations are defined as those with revenue of $500 million to $5 billion.
Most (85%) business leaders expressed concern about losing competitive ground without rapid AI adoption, highlighting that fast-tracking implementation is a top priority.
Their top goal for 2025 is to use AI tools such Microsoft Copilot to drive new revenue while building a collaborative workplace culture. Slightly more than (53%) said they expect to increase budgets for generative AI projects by up to 25%.
Nearly half are at the business case (48%) or proof of concept (44%) stage.
The findings show that mid-market leaders are at a ‘defining’ moment with AI, where investments must not only boost efficiency, but ignite future innovation and sustainable growth, said Rodrigo Caserta, CEO of Avanade.
“The tension between cost-cutting and growth ambitions shows the AI value equation is still being worked out,” he said.
“Productivity with AI isn't just about doing things faster; it's about reimagining work itself. People are central to this shift, requiring workforce alignment, clear communication and new training."
Avanade is launching services to guide mid-market companies through workforce, data security and legacy tech challenges to help them bridge the critical gaps that occur during AI adoption, the company said.
The challenges include concerns around technology infrastructure and data security. Most (95%) business and IT decision-makers said leaders are fast-tracking plans to modernize legacy systems. While 76% stated that poor data quality and governance inhibits AI progress.
Nearly all respondents (94%) cited sensitive data protection as critical, and 44% said they are planning to implement new data platforms and 41% setting governance standards.
To support the scaling of AI, respondents said budgets will focus on data and analytics (27%), automation (17%), and security and cyber resilience (15%).
“For mid-market companies with ambitious AI goals, balancing cost-efficiency with workforce readiness and a strong tech foundation is critical,” said Jason Hunt, global client solutions lead at the company. He said Avanade’s new suite of services has been built to help achieve this.
PageGroup, a global recruitment firm based in the U.K., is working with Avanade to leverage AI to drive long-term value.
Alex Bates, managing director of group data, insights and activation at the company, said Avanade had helped it integrate generative AI into its job search functions after it experienced challenges blending the technology with professional experience.
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