AI Adoption Hindered by ROI Despite Rising Expenses: Lenovo Study

NewsAI Adoption Hindered by ROI Despite Rising Expenses: Lenovo Study

Lenovo’s Research Highlights the Growing Role of Generative AI in Global Enterprises

February 5, 2025 – A recent study, conducted by International Data Corporation (IDC) and commissioned by Lenovo, reveals significant insights into the future of artificial intelligence (AI) in global organizations. The report, titled "2025 CIO Playbook: It’s Time for AI-nomics," suggests a substantial increase in AI adoption, with a notable focus on Generative AI applications. The findings indicate a growing commitment from businesses to incorporate AI into their operations, despite some skepticism and challenges in realizing tangible returns on investment (ROI).

Expanding AI Adoption and Budget Allocation

The research highlights a remarkable trend: AI spending is expected to nearly triple in 2025 compared to the previous year. This surge reflects the increasing importance that decision-makers place on AI technologies to drive business objectives. Specifically, IT leaders anticipate allocating around 20% of their technology budgets to AI solutions by 2025. This shift underscores a strategic move towards integrating AI into core business processes.

Challenges in Proving ROI

Despite the enthusiasm for AI, organizations face significant hurdles in demonstrating the financial benefits of these investments. The study identifies financial risk and uncertain ROI as primary barriers to widespread AI adoption. Although many AI applications have met business expectations, a gap remains between investment levels and confidence in the technology’s value. Notably, 37% of management expresses skepticism regarding AI, contrasted with approximately 90% of IT professionals who report that AI has fulfilled their expectations. This disparity highlights the ongoing challenge of aligning business confidence with the potential benefits of AI.

Rapid Adoption of Generative AI

Generative AI, a subset of AI known for its ability to create content such as text, images, and music, is gaining traction. Currently, only 11% of enterprises deploy Generative AI-powered applications. However, this number is projected to increase nearly fourfold to 42% in the coming year. Key areas expected to benefit from Generative AI include IT operations, software development, and marketing. These sectors are likely to witness enhancements in efficiency and creativity through the integration of Generative AI tools.

Addressing Organizational Readiness

The report also sheds light on challenges related to organizational readiness for AI integration. Ethical concerns and biases in AI and machine learning were flagged as particularly complex issues. Additionally, over half of global businesses lack a comprehensive AI Governance, Risk, and Compliance (GRC) policy. To harness AI’s full potential, companies must focus on training and upskilling their workforce, modernizing IT systems, and establishing robust processes for ethical AI use. By addressing these challenges, businesses can unlock the productivity gains promised by AI agents and assistants.

Importance of Data Quality

A critical factor for successful AI implementations is data quality. The report emphasizes that data sovereignty, compliance, and the availability of quality data are paramount for effective AI deployment. Conversely, data quality issues, high IT costs, and the challenge of integrating AI with existing systems are common causes of AI project failures. As a result, 33% of respondents plan to enhance their data management capabilities within the next year to support AI initiatives.

Building Skilled Partnerships

The research underscores the necessity of forming strategic partnerships to advance AI agendas. A lack of skilled expertise is a major deterrent to AI investment. Collaborating with partners possessing strong AI capabilities is crucial for successful AI implementation. Organizations recognize that they cannot achieve their AI objectives in isolation and must leverage external expertise to maximize the benefits of AI technologies.

Lenovo’s Perspective on AI

Ken Wong, President of Lenovo’s Solutions & Services Group, emphasizes the need for organizations to accelerate their AI efforts while future-proofing their technology infrastructure. He suggests that simplifying the design, deployment, and integration of AI solutions is essential for demonstrating their impact and building confidence in future investments.

Ashley Gorakhpurwalla, President of Lenovo’s Infrastructure Solutions Group, advocates for a hybrid approach to AI. This strategy involves seamlessly integrating private and public AI models to deliver scalable solutions that drive measurable business outcomes. Lenovo’s commitment to a hybrid AI approach reflects its dedication to enabling organizations to harness AI’s transformative power effectively.

For more detailed insights, you can explore the full "2025 CIO Playbook" on Lenovo’s website. Additionally, Lenovo’s Hybrid AI offerings provide further information on how businesses can leverage AI to achieve their strategic goals.

In conclusion, the Lenovo-commissioned IDC research paints a promising picture of AI’s future, with Generative AI at the forefront of this transformation. However, organizations must navigate challenges related to proving ROI, ensuring data quality, and overcoming organizational readiness hurdles. By fostering skilled partnerships and adopting a strategic approach to AI integration, businesses can unlock the full potential of AI technologies and drive meaningful innovation.

For more Information, Refer to this article.

Neil S
Neil S
Neil is a highly qualified Technical Writer with an M.Sc(IT) degree and an impressive range of IT and Support certifications including MCSE, CCNA, ACA(Adobe Certified Associates), and PG Dip (IT). With over 10 years of hands-on experience as an IT support engineer across Windows, Mac, iOS, and Linux Server platforms, Neil possesses the expertise to create comprehensive and user-friendly documentation that simplifies complex technical concepts for a wide audience.
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