New research from tech giant IBM has shown AI investment in Europe is anticipated to rise in 2025 as businesses seek to build on promising AI progress.
The IBM study, conducted by Morning Consult and developed in collaboration with Lopez Research, surveyed over 2,400 IT decision makers (ITDMs) around the world to assess the progress of their 2024 AI strategies, the returns generated from these AI investments and the impact on future plans.
Globally, the data reveals that organisations are increasing their AI investment, with one third of respondents planning to start more than 20 AI pilots in 2025, compared to only 20 per cent in 2024.
In terms of financial impact, nearly half (47 per cent) say they are seeing positive ROI from their investments at this stage.
The findings also show a change in how success is being measured, with the prioritisation of innovation and productivity over money saved, to achieve the immediate business value of AI.
This is the case in Europe. Research demonstrated that while only 38 per cent of European organisations have achieved positive ROI from their AI investment so far, below the global average of 47 per cent, organisations are betting on AI for the long term and shifting the metrics for success.
Forty per cent per cent of ITDMs in this region reported that AI investment was equally innovation-driven and ROI-driven.
Eighty per cent of EMEA ITDMs surveyed reported that their company has made progress in executing its AI strategy, with a third (31 per cent) reporting significant progress.
This falls slightly below the global average of 43 per cent.
Despite this, only 38 per cent reported positive ROI from AI investments compared to the global average of 47 per cent. France came in the lowest, with only 29 per cent reporting positive ROI.
Over half (53 per cent) of EMEA ITDMs stated their companies are increasing AI investment in 2025.
The number of AI pilots is expected to increase in 2025, with 74 per cent of respondents stating they planned to start more than ten new pilots next year – a 4 per cent increase from 2024.
Open source is becoming a key priority, with 32 per cent of EMEA ITDMs stating that over half of their company's current AI solutions or platforms are based on open source. However, we can expect to see this rise over the next year, with 45 per cent of surveyed respondents identifying increased use of open source AI as a critical area for optimisation in 2025.
Investment in cloud-managed services and hiring specialized talent were also identified as key strategies for optimisation.
Data quality and availability (51 per cent) and integration with existing systems (42 per cent) were identified as the most common obstacles for European organisations implementing new AI pilot projects.
Ana Paula Assis, general manager and chair of IBM EMEA, said: "As we look towards 2025, companies across Europe will be looking to build on the momentum of their AI progress.
“While organisations in Europe are reporting a lower ROI than the global average, the overall commitment to increasing investment indicates a growing recognition that AI innovation is a long-term investment in your company's future.
“By placing more value on productivity gains and faster software developments than traditional financial savings, companies are demonstrating a forward-looking approach to AI that will pay dividends in the future.”
