Global State of AI, 2025

Enterprise awareness and adoption of artificial intelligence (AI) have accelerated significantly worldwide. Advances in AI technologies, combined with increased accessibility, are enabling businesses to integrate AI seamlessly into their operations. Nearly 90% of IT and business decision-makers recognize AI and machine learning as critical to achieving their business objectives. AI deployments are expanding across all business functions, moving beyond isolated use cases to enterprise-wide implementation. Organizations are increasingly leveraging AI as a strategic enabler, ensuring its integration aligns with broader business objectives and drives cohesive digital transformation.

In this study, Frost & Sullivan presents the survey's key findings about the state of adoption of AI. Respondents were drawn from senior IT decision makers across multiple verticals, including financial services, healthcare, retail, government, technology, and manufacturing. The major themes explored in the survey include the current state of AI deployment, key organizational goals of AI implementation, the demand for specific AI-related technologies, and the main AI deployment models. The analysis also gives readers an understanding of the prominent AI-related technologies that enterprises are adopting.

Frost & Sullivan separately interviewed technology vendors and service providers to obtain a view about AI priorities to help end users understand the benefits and challenges of AI (as cited by peers).


  • Research Objectives and Methodology
    • Respondent Profile, AI: 2024
  • State of AI
    • Key Findings
    • Enterprises Recognize the Importance of AI/ML in Achieving Business Priorities
    • Enterprise AI Deployments Moving to Implementation Phase
    • Improving Operational Efficiency is a Key Driver for AI Investments
    • AI Deployments Continue to Witness Similar Adoption Across Business Functions
    • AI Deployments Increase Across Key Industry Verticals
    • Emerging Use Cases
    • NLP Remains the Foundation of All AI Technologies
    • Predictive Analytics Leads AI Application Use Cases, Followed by Increasing Use of Virtual Agents/Conversational Interfaces
    • Align to Transforming the Technology Landscape
    • Hybrid Cloud is the Preferred Digital Infrastructure Model for AI Deployments, Though On-Premises Deployments Have Seen a Rise
    • Data Privacy Concerns and Ability to Assess ROI Continue to Challenge AI Adoption
    • The Regulatory Landscape Continues to Evolve
  • Growth Success Factors
    • Key Success Factors and Future Directions
    • Build a Compelling Value Proposition
    • Strengthen IT Services and Advisory Capabilities
    • Focus on Business Stakeholders
    • Align to Transforming the Technology Landscape
  • Appendix
    • Growth Opportunities Fuel the Growth Pipeline EngineTM
    • Why Is It Increasingly Difficult to Grow?
    • The Strategic Imperative 8TM
  • Next Steps
    • Benefits and Impacts of Growth Opportunities
    • Next Steps

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