DowhatmattersAIValueReport2025AvanadeTrendlinesMid-marketorganizationshavehighhopesforreturnonAIinvestment,despitehardquestionsaboutpeople,dataandtechnologyAIisshapingthefutureoforganizationsofallsizes,inallsectors.Andmid-marketorganizations—renownedforspeed,innovationandresilience—arechargingahead.Cost-consciousandgrowth-focused,theseorganizationsmayhavelesscapitalthanlargercompetitors,butthatdoesn’tmeanthey’reshortonambition.OrganizationsaredivingintoAIwithconfidence,withmostpumpingupbudgetsandexpectinguptoafourfoldreturnoninvestment(ROI)within12months.TheoutlookforROIhingesonproductivityandcostsavings,with84%believingthatAIinvestmentsaimtoreplaceemployees.However,it’sclearthattheAIvalueequationisstillbeingfiguredout—withfewmeasuringvalueinthiswayandhalfworkingonthebusinesscase.Theurgencytocreatevalueispalpable—85%worrytheirorganizationwillfallbehindiftheydonotfasttrackAI.ThisneedforspeedisreflectedinhoworganizationsareimplementingAI,withmosttakinganapproachthatisout-of-the-boxorisolatedtospecificfunctions.Atthesametime,thedesiretoaccelerateiscompromisedbyessentialAIgroundworkacrosspeople,dataandtech.AsAIincreasinglybecomespartofeverydaywork,weanticipateashiftinworkforcedynamics.Insteadofapassivetooltobe‘used’,AIwillbecomeaproactivememberoftheteam.UnderstandingthenewrelationshipbetweenworkersandAI,includingthesocialandemotionalimpacts,willbekeytobuildingtrust.ThequestionofhowtodeterminewhichdecisionsAIcanautonomouslyhandleisbecomingcritical.AstrikingmajorityaretrustingAItomakedecisions,eventhoughonlyathirdfullytrusttheresults.ThereisagrowingneedtodistinguishbetweenhumanandAI-generatedvalue,whileensuringthattherightguardrailsareinplacetoteachAIto“forget”outcomeswithunintendedbiasorunethicalfacts.AIValueThegapbetweenexpectationandrealityOurreportexploresinsightsfrom4,100decisionmakersacross10countriesand9industriesabouttheirAIaspirationsfor2025.Asmanyforgeforward,weseeastrikingtensionbetweenthedesireforfastvalueandtherealityoftacklingfoundationalchallengesinworkforcedynamics,dataqualityandgovernance.Leaderscan’tignorecriticalhumanconsiderationswhileensuringthatdataandtechnologyaresetupforAIsuccess.2ExplorethisreportExecutivesummary$500M–$5BNannualrevenuesofmid-marketorganizationssurveyed4,100decisionmakerssurveyed10countriesrepresented:aroundtheglobe9majorglobalindustriessharingperspectives4employeelevelsacrossorganizations,fromtheC-SuitetospecialistsResearchapproachKeyfindingsWorrytheyrisklosingcompetitiveedgebynotmovingfastwithAI85%NeedforspeedSayAIinvestmentistoreplaceemployeesforcostsavings84%ROIhingesonproductivityForevery$1spentonAI,59%expectupto4Xreturninunder12monthsOptimismforAIvalue4XArestilldevelopingabusinesscaseand44%arestuckatproof-of-conceptstageEssentialAIgroundworkstillneeded48%3FivequestionsforleadersAIvaluedependsontrustWelcomeAItotheteamRapidAIreturnsHopesforAIvalueOrganizationsarebullish,withmostexpectinguptofourfoldreturnswithin12monthsandmakingAIatoppriority.OurinsightsrevealatensionbetweenaneedtocutcostsandcleardesireforAItogenerategrowth,suggestingtheAIvalueequationisstillbeingfiguredout.HopesforAIvalueCouldbottomlinefocuslimittoplinegrowth?HOPESFORAIVALUE“[What’sdrivingtheadoptionoftechnologyis]Productivity.Weneedtogetourcoststoservedownsignificantly.Themarketisgettingmoreandmorecompetitive.We’vegotanimperativereallytodriveourco...
