// REGIONAL ROUND-UP //
AFRICA | APAC | EUROPE | MIDDLE EAST | NORTH AMERICA
EMEA SPENDING ON AI SET TO DOUBLE , BUT SCALING CHALLENGES AND A LACK OF SKILLS ARE HOLDING BACK ADOPTION
Business leaders and IT decisionmakers in EMEA report the highest satisfaction with AI projects globally in the last 12 months , fuelling a 104 % increase in expected AI investments this year , according to new research from Lenovo . The AInomics CIO Playbook 2025 , with research insights from IDC , found that while investment and confidence in AI continue to grow , critical challenges remain around training staff , poor data quality and scaling initiatives .
The research , undertaken with 620 business leaders and IT decision-makers from mid to large-sized businesses across EMEA , uncovered that 94 % of AI projects undertaken in the last 12 months at least met expectations , and nearly a third ( 31 %) exceeded them , double the rate reported in North America ( 16 %). The region is also the most optimistic around AI , with 55 % of management teams positive about its potential , within which 10 % are ‘ highly enthusiastic ’.
Generative AI driving AI investment growth areas
With this satisfaction comes a change in priorities around AI investment , as businesses grapple with where it will have the biggest impact . Generative AI will be the primary AI focus for the next 12 months , increasing nearly fourfold from 12 % to 44 %, at the expense of the focus given to predictive and interpretive AI platforms .
Looking at other AI technologies , AI embedded applications were the biggest investment area over the last year . Now , businesses are focusing their spending on developing and managing AI models ( 32 %), up 10 % compared to the previous 12 months . This comes as the proportion of IT budgets allocated to AI swells from 13 % to 20 %. Interest in AI Professional Services is also increasing amongst businesses in the region , shifting beyond current usage of 27 % with a further 72 % exploring ( 19 %) or planning ( 53 %) to implement such tools .
The big upswing in Generative AI reflects a trend of successful pilots and projects over the last year . While previous studies reported concerns around capability limitations of AI models , these look to have been overcome and businesses now feel comfortable forging ahead with deployments and reaping the benefits of the technology .
Data challenges pose obstacles for AI implementation
Despite the enthusiasm and increases in adoption , more work is needed to realise the full potential of AI in EMEA . Where AI projects are not meeting expectations , the top reasons for this were challenges scaling AI ( 30 %) and data quality issues ( 29 %). While 46 % of EMEA businesses have AI governance , risk and compliance ( GRC ) policies in place , 26 % report that enforcement is limited and 22 % of businesses in the region have no plans to establish an AI GRC , the highest regional proportion globally .
Greg Smith , Executive Director and General Manager , EMEA Lenovo Solutions & Services Group , said : “ 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 . Leaders are quickly growing in confidence and looking to diversify their approach with models like AI-as-a-Service .” �
Intelligent SME . tech
59