A new study has revealed that 91% of middle market organisations in the US and Canada have integrated generative AI into their business practices, marking a significant increase from 77% the previous year. Despite the high adoption, the RSM Middle Market AI Survey 2025 highlighted that 53% of firms feel only “somewhat prepared” for its implementation, while an additional 10% are not prepared at all, highlighting a significant readiness gap in the middle market.

The survey, conducted by Big Village, included 966 participants, with 762 from the US and 204 from Canada. According to the study, the widespread adoption is supported by 79% of AI users having a defined strategy, with 37% reporting a well-developed plan. Furthermore, 25% of respondents have fully integrated generative AI into core operations, showcasing its impact on efficiency gains.

Data analytics, IT operations, and customer service see high AI integration rates

Generative AI’s role in enhancing productivity is highlighted by 50% of users experiencing streamlined IT projects, 45% noting time savings in data analytics, and 39% reporting improved customer service processes. The survey identifies text generation and summarisation as the most prevalent applications at 49%, followed by workflow development at 45%, and intelligent forecasting and sales content creation, each at 40%. Data analytics, IT operations, and customer service are key areas of AI integration, with adoption rates of 58%, 57%, and 48%, respectively.

The survey indicates that 53% of respondents feel only somewhat prepared for AI implementation, with 39% citing a lack of in-house expertise and 34% lacking a clear AI strategy. Data quality issues are reported by 32%. Even among those prepared, 92% encountered challenges during rollout, with data quality, privacy, and security being common issues. To address these challenges, 70% of firms using generative AI recognise the need for external support, and 47% of those with AI budgets are investing in consulting services.

“The adoption rates we’re seeing prove that AI is no longer a luxury, but a necessity for middle market firms to remain competitive,” said RSM’s US partner and enterprise digital leader, Sergio de la Fe. “While 88% of those using generative AI said it has impacted their organisation more positively than expected, 92% reported experiencing challenges during AI implementation rollouts, demonstrating how complex and multi-faceted the integration process is. We found that respondents cited hurdles around data quality, skills gaps, and governance that companies must proactively address through strategic planning and investments.”

The survey also highlights differences between US and Canadian firms. Negative consequences from AI implementation were reported by 37% of Canadian respondents compared to 29% of US respondents. Additionally, 75% of Canadian firms felt unprepared for AI adoption, in contrast to 61% of US firms.

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