In recent months, a report from ServiceNow highlighted significant challenges faced by businesses in Europe, the Middle East, and Africa (EMEA) regarding their artificial intelligence (AI) investments. Despite a notable increase in AI spending, which is projected to reach $581 billion globally by 2025, many organizations in the region are failing to translate their financial commitments into tangible results. The report indicated that EMEA businesses scored an average of 51 out of 100 in overall AI maturity, reflecting a 34% increase from the previous year. However, when it came to implementing AI-enabled workflows, the score dropped to just 40 points, revealing a substantial gap between strategy and execution. This discrepancy suggests that while organizations are investing heavily in AI capabilities, they have not yet fully unlocked their potential.
The survey conducted by ServiceNow also revealed that only 16% of respondents had successfully replaced outdated legacy systems with integrated platforms, which are essential for maximizing AI's effectiveness. Furthermore, while 59% of professionals indicated that their organizations had moved beyond initial AI pilot projects, a mere 9% reported making meaningful progress towards developing autonomous, multi-step workflows. This indicates that many businesses are still in the early stages of AI adoption, primarily using the technology to assist employees rather than fundamentally transforming their operations.
In Ireland, where businesses are already grappling with rising costs and tighter margins, the pressure to effectively implement AI is particularly acute. The report emphasized that Irish organizations are among the most ambitious in Europe regarding AI adoption. However, the challenge lies not in their commitment to AI but in connecting that commitment to the necessary operational infrastructure. Paul Turley, senior director at ServiceNow Ireland, noted that organizations that have successfully bridged the gap between strategy and execution are reaping significant rewards, utilizing AI at a rate approximately 18 times higher than their peers.
Data management emerged as a critical barrier to successful AI execution, with 73% of EMEA executives identifying inadequate data accuracy, access, and management as significant obstacles. Only 57% of organizations in the region are utilizing agentic AI, and just 9% are leveraging the technology to create autonomous workflows. This limited use of AI suggests that many businesses are not fully capitalizing on the technology's potential to drive operational efficiency and innovation. Additionally, only 19% of EMEA organizations reported having implemented AI testing, auditing, and risk processes, despite the stringent regulations in the region. The report concluded that governance maturity is a key differentiator between organizations that succeed in the AI landscape and those that lag behind, with mature governance enabling businesses to scale AI confidently and achieve substantial returns on investment.
