94% of mid-market companies use generative AI -- but few have what it takes to scale
Kaufman Rossin has published a report detailing the current state of artificial intelligence (AI) adoption in mid-market companies, revealing a significant disparity between initial AI adoption and long-term outcomes, along with a four-stage framework to assist executives in bridging this gap.
The report, titled The State of Artificial Intelligence in the Mid-Market, indicates that while generative AI is nearly universally adopted among mid-market enterprises, the necessary infrastructure, governance, and organizational alignment to achieve sustained, enterprise-wide results are largely lacking. Specifically, 94 percent of these companies report using generative AI, albeit in a fragmented manner that complicates overall strategy.
While many organizations have advanced past preliminary experimentation—83 percent are engaged in structured trials or have integrated AI into core processes—only 2 percent have effectively scaled AI operations. Three primary barriers identified in the report inhibit wider implementation: a limited pool of qualified AI talent, cybersecurity risks that slow down deployment, and challenges related to integrating AI with existing legacy systems. Moreover, measuring return on investment (ROI) remains a common struggle, with time savings being the most frequently recognized benefit of AI usage.
Despite uncertainties regarding ROI, there is an inclination among mid-market firms to escalate AI investments, as they regard generative AI as vital for future competitiveness. Marc Feigelson, CEO-Elect of Kaufman Rossin, commented on the rapid pace of AI development, noting that organizations must make intentional choices in their AI strategies to ensure effective outcomes. To guide firms in evaluating their AI progress and strategies, Kaufman Rossin has introduced an AI Maturity Framework that categorizes businesses into four stages: Dabblers, Testers, Builders, and Operators.
Vera Nieuwland, Digital & AI Transformation Services Leader at Kaufman Rossin, emphasized the importance of intent in utilizing AI effectively, stating that successful companies are clear about their desired business outcomes and remain focused on suitable use cases while actively engaging their workforce in the transition to AI integration.