Avanade Trendlines: AI Value Report 2025

Mid-market organisations are charging ahead with AI. Discover insights from 4,100 decision-makers on their ambitions for AI value in 2025 and the tough realities that come with it.

Avanade Trendlines: AI Value Report 2025

AI value: the gap between expectation and reality

Our survey of organisations with $500M-$5B annual revenue shows that leaders are diving confidently into AI. Most expect up to 4X ROI in under 12 months. Our research uncovers the drivers behind these hopes—and what’s holding organisations back.

Up to 4X ROI on AI within 12 months

Up to 4X ROI on AI within 12 months

Desire to get to AI value fast

Mid-market leaders are counting on value from AI. Most will make it a top priority for 2025, moving to production while pumping up budgets. But the AI value equation is being figured out—44% are stuck in proof-of-concept and 48% are still crafting the business case. Our insights point to a gap between ROI expectation and the realities of AI.

84% say AI investment aims to replace employees

84% say AI investment aims to replace employees

AI ROI hinges on productivity and efficiency

ROI expectations are laser focused on headcount savings and productivity. 84% believe that AI investments aim to replace employees for cost savings and 69% use productivity gains as the primary value driver. Yet at the same time, decision makers call out their top priority is using tools like Copilot to create new revenue. Our research explores how AI value hangs in the balance between topline growth and bottom-line efficiency gains.

85% fear falling behind with AI

85% fear falling behind with AI

Moving fast while tackling AI foundations

Decision makers want to move fast with AI and 85% fear they’ll fall behind if they delay. But many lack a cohesive roadmap and are scattering ‘a little bit of AI’ into many places. Our research highlights a tension between a need for speed and the careful deliberation needed for the long run. We reveal how fundamental people, data and tech considerations risk stalling AI acceleration.

47% of industries focus on productivity from AI

47% of industries focus on productivity from AI

Energy and CPG excel in AI-driven productivity

47% of industries aiming for productivity gains from AI, sector-specific trends emerge:

  • CPG and Energy: 53% focus on productivity improvements
  • Retail: 27% prioritise customer experience
  • Health: 18% target employee experience
  • Government: 17% highlight cost savings
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