Two thirds of firms report major productivity gains from AI

Two thirds of organizations in Europe, the Middle East, and Africa (EMEA) report significant productivity gains from using artificial intelligence (AI), with many expecting returns on their investments (ROI) within the next year. That’s according to a new study by IBM. 

The Race for ROI report surveyed 3,500 senior executives across 10 countries revealing that 66 percent of organizations have achieved notable operational productivity improvements with AI.

According to the study, business areas achieving the biggest AI-driven productivity gains are software development and IT (32 percent), customer service (32 percent), and procurement (27 percent). However, the findings suggest small to medium sized enterprises (SME) and public sector organizations are falling behind larger, private sector firms in boosting productivity with AI.

The PEX Report 2025/26 found that organizations are using a variety of AI types to support business transformation. Almost two thirds (63 percent) use generative AI, with 62 percent using standard/traditional AI and 40 percent using AI agents/agentic AI. Meanwhile, 48 percent of surveyed businesses are prioritizing AI adoption in the coming year with almost three-quarters (70 percent) state that AI is either “critical” or “very important” to their organization’s strategic goals.

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AI is transforming business models

IBM’s study indicates that, across EMEA, leaders are increasingly leveraging AI to drive strategic business transformation. Among the 66 percent of respondents who reported substantial productivity gains, nearly one in four (24 percent) attributed those gains to AI fundamentally reshaping their business models.

Notably, about a third of organizations are already applying AI to transform their operations – for example, accelerating innovation cycles (36 percent), moving from periodic planning to continuous AI-driven decision-making (32 percent), and redesigning value streams around AI rather than simply automating existing processes (32 percent). Around two in five plan to adopt AI in all these areas.

Almost half of senior leaders surveyed (48 percent) said AI is enhancing workforce capabilities. According to the report, productivity gains are enabling employees to dedicate more time to higher-value activities such as developing new ideas (38 percent), strategic decision-making and planning (36 percent), and creative work (33 percent).

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Harnessing the true value of AI 

“The true value of AI for business goes far beyond individual productivity – it’s about strategic transformation,” commented Ana Paula Assis, SVP and chair, IBM EMEA and growth markets. “Our research suggests that, while we are still in the foothills of AI adoption, enterprises in EMEA are seeing meaningful productivity gains from infusing AI into their operations, with many redesigning their business models.”

The study found that openness, interoperability, and choice are critical priorities for all types of organizations adopting AI. The vast majority (85 percent) of respondents emphasized the importance of transparency in AI systems and models, ensuring that the technology operates ethically and responsibly. 

A further 85 percent said they value having the flexibility to choose and adapt AI solutions or providers as needs evolve, underscoring strong demand for autonomy.

While the findings suggest companies are progressing towards greater ROI on AI, they also identified concerns about security, privacy, and ethics as barriers to scaling successful AI pilots, cited by 68 percent of respondents. Similarly, IT complexity challenges, such as integrating AI with legacy systems, was cited by 68 percent of senior leaders surveyed.

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