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Understanding AI Adoption Barriers for Businesses

The recent study published by EPAM Systems, Inc., a prominent leader in digital transformation and product engineering, unveils critical insights into the obstacles businesses encounter in adopting artificial intelligence. Conducted among 7,300 participants across nine countries, the report titled From Hype to Impact: How Enterprises Can Unlock Real Business Value with AI highlights the current state of AI adoption, associated challenges, and opportunities for organizations aiming to derive tangible business value from their AI investments.

Key Findings on AI Adoption

The findings from the study present a striking realization about the existing discrepancies between how organizations perceive their AI deployment and the actual performance in this realm. Respondents from the USA, Canada, the UK, Germany, Switzerland, France, the Netherlands, Singapore, and Argentina revealed that nearly half (49%) of them rated their companies as "advanced" in AI implementations. Nonetheless, only 26% of those who identified as advanced or disruptive have successfully launched AI use cases in the market.

"Since the advent of ChatGPT, we’ve observed companies experiment with AI, primarily focused on immediate productivity gains and operational efficiency improvements," noted Elaina Shekhter, Chief Marketing and Strategy Officer at EPAM. "This study indicates that we are transitioning into a new phase where success depends on identifying quality use cases and strategically prioritizing them for comprehensive organizational impact. Organizations that can effectively align their talent, data, and technology with these use cases are likely to successfully leverage AI on a large scale and extract business value from their investments moving into 2025 and beyond."

Some of the foremost insights gathered from the report include:
1. Increased AI Investments: Companies are planning a 14% year-on-year increase in their AI expenditure in 2025, signaling ongoing commitment to AI-driven growth.
2. Challenges in Scaling AI: While 30% of technologically advanced companies have successfully implemented AI at scale, numerous organizations are struggling to bridge the gap between experimentation and enterprise-wide deployment.
3. Direct Business Impact of AI: Disruptive companies attribute 53% of their anticipated profit in 2025 to their AI investments, underscoring the tangible financial effects for market leaders.
4. Governance and Security Posture: Businesses expect at least 18 months to establish effective AI governance models, highlighting the complexities of aligning AI with ever-evolving regulatory landscapes.
5. Talent Acquisition for AI: 43% of all companies surveyed intend to hire AI-related roles in 2025, with machine learning engineers and AI researchers being the most sought-after positions.

Bridging Gaps for Effective AI Implementation

According to Dmitry Tovpeko, EPAM's VP of Engineering, while goals like improved productivity and operational efficiency are often universal, true transformation comes from bridging the divide between technical teams and business objectives. As AI continues to reshape the business landscape, developers are evolving from task-focused users into strategic experts who deploy AI responsibly across end-to-end scenarios. The success of AI implementation rests not merely on technology stacks but on the alignment of tech teams with business goals to address real customer problems.

The report emphasizes four critical areas necessary for the successful application of AI:
1. People, Processes, and Culture: Effective AI implementation requires strong leadership to define clear priorities and focus areas. The data reveals that 65% of disruptors recognize the skills necessary for AI deployment.
2. Modernization of Business and Technology: 31% of executives regard outdated technology as a barrier to AI adoption. However, the primary impediment is the lack of alignment between business and technical teams. Once clear organizational goals are communicated, technical teams can develop a modernization strategy.
3. Security Considerations: Security is a universal priority among senior executives and engineering teams, especially concerning data protection and quality, with 35% claiming that their biggest challenge in achieving modernization is the lack of advanced security programs.
4. Governance and Responsible AI Practices: Though 75% of advanced companies claim to have clear AI strategies, only 4% of disruptors have developed comprehensive governance frameworks, recognizing the time that effective governance usually requires.

According to Forrester's Prediction 2025 Artificial Intelligence report, a renewed focus on strategy, closer collaboration between business and IT, and a shift towards predictive AI are anticipated as organizations learn to manage data and AI together.

Nir Kaldero, Chief AI Officer at EPAM NEORIS, stated, "Throughout 2023, many were experimenting in the race for AI, spawning a selective group of pioneers who transformed bold ideas into scalable realities. These leaders perceive challenges as opportunities and view regulations as non-negotiable, treating uncertainty as fertile ground for innovation. The next phase of AI is not merely about experimentation; it demands large-scale deployment focused on enterprise-wide, impactful use cases, while efforts continue to align people and culture, data and the cloud, and new processes to unlock true exponential business value."

The report concludes by urging organizations to align AI with their business objectives rather than modifying their goals around AI capabilities. Achieving success in this new phase necessitates that companies go beyond implementing AI merely for productivity gains and operational efficiency. Forward-thinking companies must strategically integrate AI throughout their value chains to drive revenue growth and enhance customer experience.

To access the full 2025 AI report, please visit www.epam.com/ai-report-2025.

Research Methodology

The data published in this report are based on a survey of 7,300 respondents from companies with over 10,000 employees, evenly distributed across C-Suite and Vice President levels, as well as engineers and developers from nine countries (the USA, Canada, the UK, Germany, Switzerland, France, the Netherlands, Singapore, and Argentina) and eight industries (financial services, life sciences and MedTech, business information services, education, retail and consumer goods, telecom, media and entertainment, insurance, automotive, and manufacturing). The survey was conducted between October 24, 2024, and December 3, 2024, in collaboration with Censuswide.

For more information about EPAM Systems, which has utilized its software engineering expertise since 1993 to become a leading global provider of digital engineering, cloud, and AI-enabled transformation services, visit www.epam.com. Follow us on LinkedIn for more insights.