Insights from the 2025 REVelate Report on Enterprise AI Progress and Challenges

Introduction

In a rapidly evolving digital landscape, enterprise AI is gaining significant traction, moving from experimental phases into widespread production. A recent report by Domino Data Lab, the 2025 REVelate report, sheds light on current advancements in AI technology and the hurdles organizations must navigate to seek tangible returns on investment (ROI).

Key Findings of the 2025 REVelate Report

The survey reveals that while many enterprises are adopting AI more vigorously, a noteworthy challenge persists: achieving effective ROI from these investments. Conducted among over 300 AI strategy leaders across North America and Europe, key findings indicate a paradigm shift in AI implementation priorities.

Governance as a Top Priority

Among the various aspects of AI deployment, integrated governance stands out as the foremost requirement. A significant 66% of enterprises indicated that strong AI/ML governance capabilities are critical for successful execution. This insight underscores the growing importance of structure and compliance to avoid risks associated with AI technologies, which can often be unpredictable and swift to evolve.

Rise of Hybrid Infrastructure

As companies explore scalable AI capabilities, hybrid cloud infrastructures are becoming more prevalent. Notably, 48% of respondents regard hybrid systems as essential for facilitating AI applications. This trend highlights a shift toward flexible infrastructure that can support diverse AI projects across different operating environments, both in the cloud and on-premises.

The Challenges of Progress

However, the journey towards adopting AI isn't without its hurdles. A substantial 63% of organizations surveyed face significant challenges in keeping pace with technology innovations. Moreover, nearly 59% feel that unrealistic stakeholder expectations compound the struggles of integrating AI effectively. Many organizations are grappling with a lack of well-defined leadership structures when it comes to their AI initiatives, further complicating the execution of their strategies.

Financial Barriers

Undeniably, financing remains a central concern for organizations looking to harness AI's potential. From hiring specialized talent to managing unforeseen project costs and leveraging existing infrastructure, organizations face ongoing financial strains—61% of survey participants report that these costs impede their ability to realize AI’s full advantages. Moreover, the substantial investment needed for developing and operationalizing AI infrastructures compounds the financial pressure.

Industry Variances in AI Adoption

When delving into sector-specific data, the report distinctly illustrates that different industries experience and prioritize AI adoption in varied ways.

Life Sciences

Businesses in the life sciences sector report having the highest adoption rates for sophisticated AI technologies. A staggering 98% are utilizing Generative AI, while 95% harness agentic AI to enhance efforts in pharmaceutical and biomedical innovations. However, even in this progressive sector, only a mere 3% anticipate ROI exceeding 100% this year.

Finance

Financial institutions showcase the most advanced maturity levels concerning AI initiatives. Over half of respondents have established leadership roles dedicated to AI governance, with 66% prioritizing comprehensive AI/ML governance—underscoring finance's focus on compliance, control, and operational integrity.

Public Sector

In contrast, public sector organizations often struggle with fundamental challenges related to governance and infrastructure. Many cite pressing budget constraints, which stifle their ability to advance AI strategies effectively. Merely 23% have formalized policies regarding AI data usage, indicating a significant gap in foundational capabilities necessary for implementing AI.

Conclusion

The 2025 REVelate report presents a stark reality: while the ambition for AI deployment is palpable among enterprises, the road to achieving meaningful ROI is fraught with challenges. It’s crucial for organizations to integrate AI into the core of their business function, adopting the right tools, governance, and strategic oversight to fully realize the potential of AI technologies. Organizations that take proactive measures to address these structural and financial challenges today will pave the way for leadership in their respective industries tomorrow.

For more detailed insights from the report, including strategies for successful governance and effective AI deployment, consider downloading the comprehensive 2025 REVelate survey findings.