ISG Enterprise AI Report
Summary
The ISG Enterprise AI Report provides insights into AI adoption trends across businesses, highlighting both progress and obstacles in implementing AI solutions. The research covers 1,200 AI use cases and examines enterprise AI strategies and performance.
Review
The ISG Enterprise AI Report offers a comprehensive overview of the current state of AI adoption in enterprise settings, revealing both promising developments and significant challenges. The study finds that while AI implementation is increasing, with 31% of use cases now in full production (double the previous year), organizations are struggling to meet initial expectations around cost reduction and productivity gains. The report emphasizes the importance of a nuanced approach to AI adoption, cautioning against two common pitfalls: attempting comprehensive data transformation before AI implementation ('boiling the ocean') and creating siloed pipelines for immediate needs. Instead, the research recommends a more iterative approach of rapid experimentation, lesson codification, and gradual process hardening. This approach suggests a mature, strategic method to AI integration that balances innovation with practical implementation, addressing key challenges of scalability, compliance, and value realization.
Key Points
- 31% of AI use cases reached full production in 2025, a significant increase from previous years
- Enterprises average $1.3M spent on AI initiatives, with only 1 in 4 achieving expected ROI
- Successful AI adoption requires iterative experimentation and strategic implementation