Midsize Firms See AI Promise, Face Integration Gaps
Midsize businesses are betting big on AI for productivity boosts, but a recent Netrio report highlights significant roadblocks. While over 70% of IT leaders expect AI to benefit operations and service desks, only a quarter have successfully scaled the technology across their enterprises.
The Hurdles: Security and Integration
Despite 82% of midsize firms having AI in production, widespread adoption is hampered by critical challenges. Key concerns include:
- Security, privacy, and compliance: Cited by nearly 20% of IT leaders.
- Data readiness and integration complexity: Major barriers to effective AI use.
Al Calabrese, VP of AI services at Netrio, notes that many companies struggle to see tangible returns due to these execution-phase difficulties.
Cybersecurity Risks Loom Large
The report also flagged serious cybersecurity risks linked to AI. Nearly three-quarters of executives reported an AI-related security incident or near miss in the past year. Crucially, fewer than half of organizations have formal AI policies with enforced controls, indicating a governance gap.
A significant oversight issue emerged: more than 50% of respondents act on AI outputs without human review, even with high confidence in a 24-month ROI.
Robust Investment Continues
Despite these challenges, AI investment remains strong. Almost 90% of surveyed companies plan to invest at least $100,000 in AI over the next two years, with over half committing $250,000 or more. Funds are directed towards AI training, data platforms, integration, cloud infrastructure, and security tooling.
The takeaway: future AI success in the midmarket depends less on access to technology and more on the capability to effectively harness, govern, and secure it.