Business leaders and IT decision-makers across the EMEA region report the highest satisfaction with AI projects globally, driving a remarkable 104% increase in AI investments this year, according to new research from Lenovo. The AInomics CIO Playbook 2025, developed in collaboration with IDC, highlights that while AI investment and confidence continue to rise, organizations still face hurdles in staff training, data quality, and scalability.
The study, conducted with 620 business leaders and IT professionals from mid-to-large enterprises in EMEA, found that 94% of AI projects in the past year met or exceeded expectations. Notably, 31% of these projects surpassed expectations—double the rate recorded in North America (16%). The region also boasts the most optimistic outlook on AI, with 55% of management teams expressing confidence in its potential, including 10% who are ‘highly enthusiastic.’
Generative AI Drives Investment Priorities
This satisfaction is shifting investment priorities, as businesses seek the most impactful applications of AI. Generative AI is set to be the primary focus in the coming year, with investment increasing nearly fourfold from 12% to 44%, overshadowing predictive and interpretive AI platforms.
Over the past year, AI-embedded applications were the leading area of investment. However, spending is now shifting towards AI model development and management (32%), marking a 10% rise compared to the previous 12 months. Consequently, the portion of IT budgets dedicated to AI has grown from 13% to 20%. Additionally, there is a rising demand for AI Professional Services, with current usage at 27%, and another 72% of businesses either exploring (19%) or planning (53%) to adopt such tools.
The growing focus on Generative AI reflects a trend of successful pilot programs and projects. While previous studies highlighted concerns over AI model limitations, these issues appear to have been addressed, allowing businesses to move forward with large-scale deployment and realize the benefits of AI technology.
Challenges in AI Implementation: Data Quality and Scalability
Despite the optimism, significant obstacles remain in fully realizing AI’s potential in EMEA. Where AI projects fell short of expectations, the primary reasons cited were challenges in scaling AI initiatives (30%) and data quality issues (29%). While 46% of EMEA businesses have implemented AI governance, risk, and compliance (GRC) policies, 26% report limited enforcement, and 22% have no plans to establish AI GRC—representing the highest proportion globally.
Greg Smith, Executive Director and General Manager of Lenovo Solutions & Services Group EMEA, emphasized the need for strategic AI adoption: “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. Leveraging the right expertise and professional services will help maximize the successes that AI can bring, opening the door for targeted adoption that helps solve business challenges and drive growth.”
To overcome these challenges, businesses must focus on four key factors: ensuring data sovereignty and compliance (32%), integrating AI with existing systems and processes (32%), upskilling employees (31%), and ensuring the availability of high-quality data (31%).
Hybrid Infrastructure: The Backbone of AI Adoption
When it comes to AI infrastructure, 65% of EMEA organizations rely on on-premises or hybrid models as their primary architecture, with only 18% opting for public cloud solutions. Additionally, AI-enabled PCs are gaining traction—10% of organizations have extensively deployed them, 25% are running pilot programs, and 65% are evaluating or planning integration to enhance AI capabilities.
Giovanni Di Filippo, President of Lenovo’s Infrastructure Solutions Group EMEA, noted the shift from experimentation to full-scale AI deployment: “The EMEA markets present a diverse landscape of AI adoption, and it is clear that most organizations have moved past the hype phase of AI and have shifted focus from experimentation to full implementation. As organizations across EMEA look to move into AI growth areas, their preference for a mixture of on-prem and hybrid AI hardware is driven by the need to retain control over data security and privacy, crucial for handling sensitive information and ensuring regulatory compliance.”
Preben Fjeld, VP and General Manager of Personal Computing Devices Services at Lenovo EMEA, emphasized the role of AI PCs in boosting workforce productivity: “Businesses are increasingly prioritizing technology that supports AI-driven workforce productivity, and 2025 will mark a major shift in AI PC implementation as organizations move from piloting to implementing new devices. With the availability of AI PCs and edge devices being a top factor for successful AI implementation, success can only come from a coherent, joined-up AI strategy.”
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