Brief Overview

  • Mid-sized businesses expect productivity gains from AI tool deployment, according to a report released Monday by Netrio. A Censuswide survey of 410 mid-market IT leaders in April showed that over 70% of respondents believe the technology will particularly benefit IT operations and service desks.
  • However, mid-sized businesses still face obstacles to AI advancement, with security, privacy, and compliance issues being the most frequently cited challenges, noted by nearly one-fifth of respondents. IT leaders also identified data preparation and integration complexity as key barriers.
  • "AI in the mid-market has moved from experimentation to execution, but execution is where the real challenges begin," said Al Calabrese, Vice President of AI Services at Netrio, in a press release accompanying the report. "Businesses are investing in AI but struggling to derive tangible returns from it."

In-Depth Insights

AI adoption and ambition remain high, with 82% of respondents saying they have deployed the technology in production. However, Netrio's report reveals a disconnect between this momentum and the operational maturity needed to sustain it, with only 26% of respondents saying they have scaled and governed AI across their entire business.

Beyond IT operations, software development and cybersecurity were also seen by leaders as areas of greatest expected impact, reflecting growing confidence in AI's ability to automate routine tasks and boost employee productivity.

Cybersecurity concerns persist as the capabilities of more advanced AI models become apparent. Nearly three-quarters of executives reported experiencing a confirmed AI-related security incident or near miss in the past year. In terms of governance, less than half of respondents said they have formal AI policies and actively enforce controls.

This disconnect also extends to the day-to-day use of AI. While nearly all respondents are confident their organization will achieve measurable ROI from AI within 24 months, only slightly more than half said they would adopt AI outputs directly without human review, raising questions about whether oversight is keeping pace with adoption.

Despite concerns, investment has not slowed. Nearly nine in ten respondents plan to invest at least $100,000 in AI over the next one to two years, with more than half planning to invest $250,000 or more during the same period.

AI spending is increasingly targeting the gap areas identified by respondents: AI training and upskilling, data platforms and integration efforts, AI tool licensing, cloud infrastructure, and security tools and controls.

These findings suggest a shifting market dynamic, where the next phase of AI adoption will depend less on technology access and more on an organization's ability to effectively utilize the technology.

"What will separate winners from laggards is who can create usable, governable, secure, and supportable AI environments," the report said. "The next phase of mid-market AI success will belong to those willing to put in the effort to ensure their environments are ready for operations and to fully unlock the potential of AI tools."