A recent study conducted by Advania reveals significant hurdles hindering Europe’s mid-market organisations from fully utilising Artificial Intelligence (AI) technologies.
The research, conducted by Censuswide and spanning six European countries, indicates that 81% of mid-market entities face challenges in scaling, updating, and future-proofing their technological infrastructure in the AI era.
The study identifies several key challenges faced by mid-market organisations in embracing AI:
- Limited understanding of AI’s potential
- Existing technical debt and unclear budget allocation
- Net-Zero knowledge gap
Understanding AI’s Potential
A notable finding from the research is the lack of understanding regarding AI’s transformative potential. A third of surveyed organisations attribute their inability to future-proof their technology to a lack of AI knowledge. Even among those with some understanding, 81% struggle to envision AI’s capacity to enhance productivity. This underscores the need for informed technical partners to guide organisations in leveraging AI solutions effectively.
Technical debt emerges as a significant obstacle, with over half of mid-market organisations admitting to infrequent reviews and replacements of legacy systems. Reactive approaches to IT issues exacerbate technical debt, potentially leading to increased costs in the long run. Confused budget allocation further complicates matters, with limited funds hindering innovation and impeding efforts to address IT complexities.
Addressing the Net-Zero Challenge
In addition to technical and budgetary concerns, mid-market organisations must navigate sustainability goals, particularly in achieving Net-Zero commitments. While some progress has been made, with a third of respondents transitioning to cloud services for emissions reduction, internal education on environmental impact remains lacking for two-thirds of organisations.
Nick Isherwood, Chief Information Officer at Advania, emphasises the need for tailored solutions and flexible budgeting to address the unique challenges faced by mid-market entities. With limited resources, these organisations require strategic guidance to effectively manage IT complexities while prioritising initiatives such as AI integration and Net-Zero commitments.
As Europe’s mid-market continues to navigate the complexities of technological innovation and sustainability, informed strategies and collaborative partnerships will be essential in driving progress and unlocking the full potential of AI technologies.
