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Generative AI Adoption in Middle Market Firms

According to the recently released 2025 RSM Middle Market AI Survey, a significant trend in the adoption of generative AI is sweeping through middle market firms. The research indicates that an impressive 91% of these organizations have integrated generative AI into their operations—up from 77% just a year prior. This surge highlights a growing recognition of AI as an essential tool for maintaining competitiveness in today’s business landscape.

Strategic Commitment to AI Integration

The findings showcase a strategic commitment from middle market companies towards the integration of generative AI. Among those using generative AI, a substantial percentage—79%—reported having a defined strategy in place for adoption, with 37% asserting that their approach is well-formulated. Notably, a quarter of respondents indicated that generative AI is now fully incorporated into their core operations and workflows, marking a shift from experimental pilots to enterprise-wide deployment.

Time-Saving Benefits Realized

The advantages of implementing generative AI are becoming clear. Approximately half of the respondents using this technology reported significant time savings in IT project execution, while 45% cited reduced time in data analytics tasks. Moreover, 39% noted improved efficiencies within customer service processes. Sergio de la Fe, partner at RSM US LLP, emphasized that with 88% of users witnessing positive impacts beyond their expectations, generative AI has transformed from a luxury to a necessity for middle market firms.

Challenges During Implementation

Despite the promising statistics, the survey reveals that organizations face considerable challenges in implementing AI tools effectively. A striking 92% of those utilizing generative AI reported experiencing hurdles during deployment. The main issues identified include:

• - Data Quality: 41% cited concerns about the quality of data, which is crucial for accurate AI operations.
• - Privacy and Security: 39% mentioned challenges related to safeguarding data.
• - Internal Skills Gap: 35% identified a lack of adequate expertise as a barrier to successful integration.

These challenges underscore the significance of strategic planning and investment to address potential pitfalls in the implementation process.

The Readiness Gap

The survey also highlighted a pronounced readiness gap among middle market firms. While the majority acknowledged the need for generative AI, 53% of respondents reported feeling only “somewhat prepared” for its implementation, with an alarming 10% claiming to be unprepared at all. This gap indicates a need for organizations to bolster their capabilities and strategy for seamless AI integration.

Bridging the Gap Through Support

To overcome these hurdles, 70% of middle market firms recognized the necessity of external support, acknowledging that partnerships could effectively enhance their AI solutions. Notably, 76% of respondents reported having a dedicated budget for generative AI, with 47% allocating funds toward consulting services to ensure optimal AI performance.

Regional Perspectives: Comparing the U.S. and Canada

Interestingly, the survey illustrates contrasting experiences between U.S. and Canadian firms regarding AI preparedness. While both countries exhibit a commitment to generative AI, there are significant discrepancies. For instance, 75% of Canadian firms reported being inadequately prepared compared to 61% of their U.S. counterparts. Additionally, 37% of Canadian organizations experienced negative or unexpected outcomes from their AI implementations, compared with 29% in the U.S.

Commitment to Future Innovations

In response to the evolving needs surrounding generative AI, RSM has pledged a substantial $1 billion investment over the next three years to advance technology and AI initiatives. This commitment aims to enhance their services by investing in infrastructure, advanced AI capabilities, and workforce development, ensuring that clients navigate the complexities of AI adoption successfully.

As the adoption of generative AI continues to accelerate across the middle market, understanding and addressing challenges in implementation will be crucial. The path forward involves strategic investments and support systems that nurture growth and mitigate risks, ultimately helping organizations maximize the potential of AI in driving innovation and efficiency.