Research
The state of AI in the mid-market
A UK and Ireland view of adoption, challenges and practical next steps.
How advanced are mid-market companies with AI adoption?
Mid-market companies are poised to transform their technology and expand their AI deployments. However, 90% of those that have explored AI still have some initiatives in the early stages or have experienced stalled pilots. Many are finding it difficult to achieve their ambitions and scale efficiently.
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Confidence is high
Companies report very high confidence in their internal expertise on all aspects of AI deployment, including strategy & use case prioritisation, AI tooling & vendor landscape, and data readiness, security & privacy.
Projects are stalling
However, lack of AI expertise was the joint top reason for projects not moving beyond pilot, cited by 48% of respondents that had explored AI.
Execution-focused capability
39% of respondents highlighted building internal expertise as one of their top priorities for AI over the next 12 months.
Struggling with legacy technology
Successful AI adoption depends on having robust technology and data foundations.
Governance is also underdeveloped
More than half of respondents (59%) have yet to establish a comprehensive AI governance framework, with companies lacking either formal policies, controls, or both.
Poor data quality is a blocker
83% of companies that have piloted or deployed AI experienced poor data quality and 69% say it is preventing or delaying AI pilots or deployments.
Expected benefits
Cost savings and productivity gains remain key expected benefits of AI. It can reduce manual effort, automate administrative work and, in some cases, lower headcount.
AI creates demand for different skills
Meanwhile, 24% say AI is creating new roles and opportunities, showing that AI is also creating demand for different skills, even if this is not yet the most common impact.
How advanced are mid-market companies with AI adoption?
AI adoption in the mid-market is no longer theoretical. Nearly three quarters of companies have already moved into deployment, with 31% fully deploying AI across multiple business functions and 42% partially deploying it in specific areas.
Are expectations meeting reality?
Decisions around AI deployment are not just based on technical factors. They are heavily influenced by competitive, commercial and leadership considerations. It’s clear that companies are feeling the pressure from all directions.
What are the main barriers to AI adoption?
Almost half of respondents, 45%, say AI paralysis frequently or always stalls progress because they do not know where to start or face too many options.
How robust are companies’ technology and data foundations?
Having the right technology foundations is critical to the successful deployment of AI, yet many mid-market companies struggle with legacy technology, data quality and formal governance.
What are mid-market companies’ top AI priorities?
The future for mid-market companies will be about closing the gaps and delivering greater value from AI projects.
What are the expected benefits of AI?
Cost savings and productivity gains are among the most common expected benefits of AI. In many companies, that will include reducing manual effort, automating administrative work and, in some cases, lowering headcount.
Are your AI projects stalling?
If the findings in this report reflect the challenges you are experiencing in your own AI projects, Klarus can help identify the gaps and plot a path forward. Get in touch to arrange a complimentary, no obligation review of your existing and planning AI projects, mapped to your intended goals and outcomes.
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About Klarus
Headquartered in London, Klarus is a specialist technology consultancy dedicated to closing the implementation gap between AI potential and tangible ROI. The firm replaces the traditional consultancy pyramid with a global network of hand selected, senior experts who combine deep sector knowledge with technical proficiency. Services cover the full breadth of technology transformation, including data, enterprise applications and cyber.
The group also includes Chapter 1, a boutique search firm that secures world-class leadership for major transformation initiatives and top-tier consulting firms globally.