Avanade Trendlines: AI Value Report 2025

Mid-market organizations 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 organizations 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 organizations 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% prioritize customer experience
  • Health: 18% target employee experience
  • Government: 17% highlight cost savings

Hear from our CTO

When it comes to AI value, do expectations meet reality? Avanade Chief Technology and Innovation Officer Aaron Reich explains the research, key findings and implications.

cookie consent

Explore the findings your way

Mid-market insights

Get the inside track on expectations for AI value in 2025. Extensive insights and practical guidance built exclusively for leaders in mid-market organizations.

Industry insights

AI is reshaping banking, health and life sciences, manufacturing, government, retail and consumer goods. Discover how these sectors are achieving real value with AI.

Get the full research report today

Doing what matters starts here

Tell us more about your challenge or need and we will connect you to the right Avanade expert to help you.

How can we help?

Press Contacts

The Americas

TA-PR@avanade.com

Europe and Middle East (EME)

EME-PR@avanade.com

Asia Pacific (APAC)

APAC-PR@avanade.com

Headquarters

North America
Global Headquarters
1191 Second Avenue
Suite 100
Seattle, WA 98101
Europe

30 Fenchurch Street

London

EC3M 3BD

Growth Markets
Singapore Headquarters
Avanade Asia Pte Ltd
250 North Bridge Road
#30-03 Raffles City Tower
Singapore 179101