Market Impact Report

Enterprises must embrace AI to reimagine their future, not tinker in the margins

Central to the evolution of society is the concept of creative destruction. It is the process where innovations replace and render obsolete older ones, thus creating new economic paradigms. This has been true across history, from hunter-gatherers to people navigating the shifts brought by agriculture, the industrial revolution, the advent of the internet, and now the artificial intelligence (AI) era.

We now stand at a fresh inflection point, arguably the most disruptive since the dawn of the internet—with AI poised to reshape how enterprises operate, make decisions, and deliver value. It is becoming the ultimate disruptor, capable of amplifying human abilities and accelerating business outcomes through real-time insights, dynamic personalized experiences, and autonomous decision-making. This inflection point offers enterprises an unprecedented opportunity to reimagine the value they deliver for customers and stakeholders alike.

Yet, despite the enormous potential, 83% of enterprises (part of this study’s survey) remain in the early stages of adopting AI, iterating in the margins. Initiatives often stall at the experimentation phase as organizations grapple with scaling challenges, unclear strategies, and a lack of ecosystem readiness. In fact, for one in two enterprises, many AI solutions remain at the experimentation stage (POC, pilot) and fail to scale. Although operational efficiency is widely cited as AI’s primary role, productivity gains will soon become table stakes rather than a differentiator. Recognizing this, enterprises are turning to their ecosystems to drive deeper, more strategic value—75% of them expressed openness to working with new, specialized, or non-traditional AI partners. This shift signals the transition from labor-intensive service models to intelligent, scalable, outcome-driven orchestrators of value.

We use AI in the underwriting space, and we moved from months and weeks of analysis work to actually hours and minutes.

— CIO at an international bank

HFS Research, in partnership with LTIMindtree, has studied the potential of AI for enterprises and its purpose, impacts, and manifestations. More than 500 business and technology leaders across five industries, including banking, insurance, manufacturing, retail, and media were interviewed for this study.

The key insights gathered reflect how enterprises are getting prepared for the age of AI.

    • Purpose: The jury is out on AI: 53% of enterprises consider AI a driver of operational efficiency, while 51% see it as an enabler of business reimagination. A smaller set of respondents identify it as a strategic signaling tool, given that communicating an AI roadmap is 1.4x more likely to attract specialized talent. The purpose of AI is evolving for enterprises and will likely see further iterations before its long-term value becomes clear.
    • Capabilities: Enterprises are rethinking their organizational structures and value levers to realize AI’s potential fully. Over half (51%) plan to elevate AI to the very top, creating new C-suite roles or even an AI-focused board committee. In comparison, another 44% expect to restructure the P&L and functional leadership to ensure AI ownership aligns with where revenue is generated. Rather than immediately pursuing market-facing differentiation, 62% of enterprises are prioritizing the build-out of foundational operational capabilities (for instance, MLOps to design, train, and iterate models at scale).

We are actually reaching a point of AI-first culture. Today, anything related to AI has an implication toward revenue.

— A chief innovation officer at an international bank

    • Go-to-market: In a market clouded by AI-washing and limited innovation, nearly 50% of enterprises remain skeptical of the current supplier landscape. While concerns about vendor differentiation partly drive this skepticism, it is also compounded by internal challenges such as legacy buying behaviors that are ill-suited for fast-moving AI adoption. Still, 43% of respondents are actively exploring partnerships with innovative or niche AI specialists, preferring domain-centric providers that bring in contextual, industry-specific value rather than generic AI capabilities.
    • Expectations: (~50% of enterprises are struggling with debt (tech, talent), hindering their ability to embrace and fully maximize the potential of AI. This is reflected in ~20% continuing to buy AI in the same old way as IT has been purchased (T&M, consumption) and another 37% only partially adapting traditional IT buying for AI. On the flip side, ~50% are leaning into the narrative of outcome-based pricing but are yet to clearly define the outcomes they intend to track/measure.

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