Business investment in artificial intelligence across EMEA is set to more than double this year but scaling deployments and a lack of technical skills remain significant obstacles, according to new research from Lenovo. While regional businesses report the highest satisfaction with AI projects globally, sustained growth depends on overcoming data quality issues and ensuring governance frameworks keep pace with rapid adoption.
The AInomics CIO Playbook 2025, developed in partnership with IDC, surveyed 620 business and IT decision makers across mid to large-sized organisations in EMEA. The findings reveal a 104 per cent increase in expected AI investment, with budgets rising from 13 per cent of total IT spend in 2024 to 20 per cent this year. This surge is fuelled by a high rate of success, with 94 per cent of AI projects at least meeting expectations and nearly a third exceeding them, twice the rate reported in North America.
Generative AI gains momentum
As confidence in AI grows, priorities are shifting. Generative AI is emerging as the dominant focus, with investment in the technology set to rise from 12 per cent to 44 per cent of AI budgets over the next year. This marks a significant decline in emphasis on predictive and interpretive AI, reflecting changing perceptions of where AI will deliver the greatest business value.
The research also indicates that businesses are ramping up investment in AI model development and management, with spending in this area increasing by 10 per cent. Meanwhile, AI embedded applications, the leading investment area in the past year, are now being deprioritised as organisations move beyond individual use cases to more complex, scalable deployments. AI professional services are also on the rise, with 72 per cent of businesses in the region planning or exploring their adoption to help accelerate implementation.
These shifts suggest that AI is moving from experimental pilots to fully integrated enterprise strategies. While earlier studies identified concerns over the capability limitations of AI models, the latest findings indicate growing confidence in generative AI’s ability to deliver tangible business benefits.
Persistent barriers to AI adoption
Despite the enthusiasm for AI across EMEA, significant barriers remain. Scaling AI initiatives (30 per cent) and data quality issues (29 per cent) are the most cited reasons for projects failing to meet expectations. Moreover, while 46 per cent of businesses have AI governance, risk, and compliance (GRC) policies in place, 26 per cent admit that enforcement is limited. A further 22 per cent have no plans to introduce AI GRC policies, the highest proportion of any region globally.
Greg Smith, Executive Director and General Manager, EMEA Lenovo Solutions & Services Group, highlights the risks of complacency: “With enthusiasm around AI high in the region, businesses must work hard to overcome barriers to its adoption and integration to avoid disillusionment and drive return on investment,” he says. “Leaders are quickly growing in confidence and looking to diversify their approach with models like AI-as-a-Service.”
Successful implementation depends on addressing four critical areas: data sovereignty and compliance (32 per cent), the ease of integrating AI with existing systems (32 per cent), employee training and upskilling (31 per cent), and the availability of high-quality data (31 per cent). These findings underline the importance of a strategic approach, balancing investment in AI technologies with robust governance and workforce development.
Hybrid infrastructure takes centre stage
Organisations across EMEA continue to favour hybrid models for AI infrastructure, with 65 per cent using on-premises or hybrid architectures as their primary approach. This preference is driven by the need for greater control over data security and privacy, particularly in industries handling sensitive information and operating under stringent regulatory requirements.
Giovanni Di Filippo, President of EMEA, Infrastructure Solutions Group at Lenovo, notes that AI adoption is now firmly in the implementation phase: “The EMEA markets present a diverse landscape of AI adoption, and it is clear that most organisations have moved past the hype phase,” he explains. “Their preference for a mixture of on-prem and hybrid AI hardware is crucial for handling sensitive information and ensuring regulatory compliance.”
At the device level, businesses are also looking to enhance AI-driven productivity. While only 10 per cent of organisations have extensively deployed AI PCs, a further 25 per cent are piloting them, and 65 per cent are either planning or evaluating their adoption. Preben Fjeld, Vice President and General Manager of Personal Computing Devices Services at Lenovo EMEA, sees 2025 as a turning point for AI-enabled hardware: “Businesses are increasingly prioritising technology that supports AI-driven workforce productivity,” he says. “This year will mark a major shift as organisations move from piloting to full-scale implementation.”
Strategic AI Deployment is Critical
While investment in AI across EMEA continues to rise, the findings indicate that successful adoption is not simply a matter of increased spending. The ability to scale AI projects, ensure high data quality, and integrate AI into existing workflows will determine which businesses realise long-term value. Organisations that take a strategic approach, aligning AI initiatives with business objectives, investing in workforce readiness, and maintaining strong governance frameworks—will be best positioned to capitalise on AI’s potential.
As businesses move beyond early experimentation, the challenge is no longer whether AI can deliver impact but how to maximise its benefits while mitigating risks. For those that can navigate these complexities, AI represents not just an emerging technology but a foundational driver of competitive advantage in the years ahead.
