State of AI in Mid-Market Sector

This study reveals a substantial gap in mid-market AI strategy.

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How do mid-market companies turn scattered experiments into something the whole company can build on?

A report from Kaufman Rossin reveals a substantial gap in mid-market AI strategy: while adoption is nearly universal, the infrastructure, governance, and organizational alignment needed to generate enterprise-wide results remain elusive for most companies.

Key takeaways:

 

·      Generative AI adoption is near-universal among mid-market companies, but fragmented implementation creates new challenges.

·      94% of mid-market companies are already using generative AI. However, adoption is happening in silos; different departments and even individual employees are making independent decisions about which tools to deploy. This decentralized approach is overwhelming executives and complicating enterprise-wide strategy.

·      The most common use cases today focus on accelerating knowledge work.

·      Most organizations have moved beyond experimentation, but scaling remains elusive. The report found that 83% of mid-market companies have progressed from early dabbling to conducting deliberate trials or embedding AI into core processes. Yet only 2% have operationalized AI at scale, an indication that foundational elements for enterprise-wide AI transformation are still missing for most organizations.

·      Three primary barriers are preventing companies from scaling AI programs: AI skills gap; cybersecurity concerns; and legacy systems integration.

·      ROI measurement remains a universal challenge. Among companies using AI, time savings are the most frequently cited benefit. However, quantifying the financial return on AI investments continues to challenge nearly all organizations.

·      Most mid-market companies plan to increase AI spending, viewing generative AI as essential to future competitiveness.

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