A new report from Avanade, the world’s leading Microsoft expert, shows that mid-market¹ organisations are embracing AI with confidence, with most anticipating up to fourfold returns within 12 months. However, gaps in workforce readiness, data governance and tech infrastructure stand as key obstacles to sustainable returns. To address these challenges Avanade has created a set of solutions for mid-market organisations designed to bridge the critical gaps that occur during AI adoption.

The Avanade Trendlines: AI Value Report 2025², drawing on insights from 4,100 business and IT decision makers, finds strong enthusiasm for AI’s potential with the top goal for 2025 being the use of AI tools, like Microsoft Copilot, to drive new revenue while building a collaborative workplace culture.

Key findings include:

Increased budgets: 53% expect to increase their budgets for gen AI projects by up to 25%.
Urgency from competitive pressures: With 85% expressing concern over losing competitive ground without rapid AI adoption, fast-tracking implementation is a top priority.
AI essential groundwork still to be done: Nearly half are stuck at business case (48%) or proof of concept (44%) stage.

"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. 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. Leaders must rethink how they support collaboration, measure productivity, and ultimately, assess the true value AI brings to their organisations."

The report also underscores pressing concerns around technology infrastructure and data security:

95% of leaders are fast-tracking plans to modernise legacy systems.
76% state that poor data quality and governance inhibits AI progress.
With 94% citing sensitive data protection as critical, companies are stepping up investments in data governance, with 44% planning to implement new data platforms and 41% setting governance standards.
To support the scaling of AI, budgets will focus on data and analytics (27%), automation (17%), and security and cyber resilience (15%).

Jason Hunt, Global Client Solutions Lead, Avanade commented: “For mid-market companies with ambitious AI goals, balancing cost-efficiency with workforce readiness and a strong tech foundation is critical. Our new suite of services is built to help them achieve tangible ROI and foster a culture of innovation and sustainable growth.”

Reported Gaps	Our Services³
Workplace Readiness	Drive Business Transformation with Copilot Accelerate Revenue Generation
Data Governance and Protection	Unify Your Intelligent Analytics and Data Platform Unify Threat Protection
Modernise Tech	Build and Modernize AI Applications Modernize ERP Migrate and Secure Windows SQL and Linux Estate

One organisation working with Avanade to leverage AI to drive long-term value is PageGroup, a global recruitment firm based in the UK, which is modernising their tech through building generative AI applications to enhance job applications⁴.

“At PageGroup, we recognised the importance that AI would have on our growth ambitions, but the challenge was blending the technology with our professional experience as an organisation, to augment the work that we do,” said Alex Bates, Managing Director, Group Data, Insights and Activation at PageGroup. “As a company of our size, we need to innovate, but we also need to see return on our investments and true value, quickly. Avanade helped us seamlessly integrate generative AI into our job search functions, ensuring that the technology was not only efficient but also truly aligned with our business goals. We now offer an innovative, AI-driven experience that sets us apart in the market, ensuring sustainable growth in the short and long term.”

Mid-market organisations bullish about AI, expecting up to 4X returns, but nearly half are stuck at business case stage