- Anticipated growth in AI-enabled workflows from 3% to 25% by 2025.
- AI investment expected to rise from 12% to 20% of IT spend by 2026.
- Key benefits identified include improved decision-making (69%) and cost reduction (67%).
A recent study by the IBM Institute for Business Value reveals a significant shift towards AI implementation in business processes, indicating a substantial rise in AI-enabled workflows from a current 3% to an anticipated 25% by the end of 2025. Conducted with 2,900 executives worldwide, the study highlights that 70% consider agentic AI crucial for their organization’s future.
According to the study, AI budgets are increasingly being allocated to core business functions, with 64% of such budgets now dedicated to essential operations rather than experimental projects. This transition underscores AI's growing strategic importance in driving business efficiencies and competitiveness.
Key benefits of implementing agentic AI, as reported by executives, include improved decision-making (69%), cost reduction through automation (67%), and gaining a competitive advantage (47%). Furthermore, companies adopting an "AI-first" approach attribute more than 50% of their revenue growth and operating margin improvements directly to AI initiatives.
While the potential benefits are clear, the study also identified several challenges to AI adoption. Executives highlighted data-related concerns (49%), trust issues (46%), and skills shortages (42%) as significant barriers. Despite these challenges, AI investments are projected to increase considerably, with AI expected to account for 20% of IT expenses by 2026, up from the current 12%.
IBM's (IBM, Financial) findings illustrate a pivotal evolution in AI's role from an experimental tool to a critical component of business strategy, paving the way for enhanced process efficiency and transformative operational benefits.
