Mid-Market Companies Bullish On AI Adoption, Report Says

A recent report by Avanade reveals that mid-market organisations in Asia Pacific are increasingly confident about artificial intelligence (AI) and anticipate returns of up to four times their investment within a year. However, significant hurdles such as workforce readiness, data governance, and outdated technology infrastructure could hinder their ability to realise these returns.

The Avanade Trendlines: AI Value Report 2025, based on insights from 4,100 global business and IT decision-makers, highlights several key findings:

  • 87% of organisations plan to increase budgets for generative AI projects by up to 50%.
  • 85% are concerned about losing their competitive edge if they do not adopt AI rapidly.
  • Nearly half are still at the business case (48%) or proof-of-concept (44%) stage.

Despite the optimism, 95% of leaders are focused on modernising legacy systems, with 76% citing poor data quality as a barrier to AI progress. Furthermore, 94% of respondents identified sensitive data protection as a top priority, with many planning investments in new data governance platforms.

To support AI scaling, companies are increasing investments in data and analytics platforms (27%), automation (17%), and cybersecurity (15%).

Bhavya Kapoor, Avanade’s President for Asia Pacific

In response to these challenges, Avanade has launched seven new AI services tailored to mid-market organisations. These services, designed in partnership with Microsoft, aim to accelerate AI adoption and include tools for revenue generation, cloud migration, AI app development, and more. These solutions are intended to help businesses overcome technical obstacles and drive transformation.

Bhavya Kapoor, Avanade’s President for Asia Pacific, stated: “Mid-market companies in Asia Pacific are at a pivotal juncture in their growth and transformation, and with the right partnership and guidance, they can emerge as leaders in their industries.”

Share this post:

Comment what you think!