**Title: Companies Embrace AI but Struggle to Scale It, IDC Finds**
Businesses across Europe, the Middle East, and Africa (EMEA) are increasingly recognizing the potential of artificial intelligence (AI) to transform their operations and revenue models. However, a recent report by market intelligence firm IDC reveals that many organizations are facing significant challenges in scaling AI while managing costs and mitigating risks.
The findings, presented by IDC's senior research analyst for AI-Fuelled Business Strategies, Lapo Fioretti, indicate that an overwhelming 99% of EMEA chief executives believe that AI can play a crucial role in reinventing their business models over the next three to five years. This strong belief in AI's potential has shifted the conversation from mere acknowledgment of its importance to a strategic focus on its implementation. Notably, AI strategy has emerged as a key topic for board discussions, alongside security concerns, moving beyond traditional financial performance discussions.
Despite this enthusiasm, IDC's research highlights a significant gap between ambition and actual capability among organizations in the region. Approximately two-thirds of EMEA companies are still in the early stages of AI maturity, indicating that while the desire to adopt AI is present, the ability to implement it effectively remains limited. This trend mirrors the global appetite for AI but underscores a lag in practical application within EMEA.
AI agents are currently being utilized across various sectors, including cybersecurity, IT, human resources, and customer service, with 95% of EMEA enterprises reporting that they have AI agents in production. However, IDC cautions that this statistic reflects the technology's reach rather than the organizations' readiness to manage it effectively. As businesses increasingly deploy AI agents, they face challenges in tracking spending, particularly due to difficulties in identifying costs associated with individual workflows. Additionally, many organizations lack dedicated AI financial operations staff and grapple with opaque pricing models.
The rapid expansion of AI agent usage is outpacing the development of governance frameworks, raising concerns about financial oversight and control. Fioretti emphasizes the distinction between merely capping spending and effectively controlling it, suggesting that this difference will be crucial in determining the success or failure of AI initiatives. He states, "Capping spend is not the same as controlling it. That distinction is where the next wave of value, and the next wave of disappointment, will be decided."
IDC's analysis indicates that organizations are more likely to progress in their AI initiatives when they focus their investments on measurable business value. This approach should be supported by funded roadmaps, clearly defined outcomes, and integrated governance from the outset of AI projects. Companies that have made significant strides in AI adoption typically share common characteristics, including the use of modular platforms, connected data, and a commitment to continuous learning.
Despite the growing reliance on automation, trust and human judgment remain critical components of successful AI implementation. Reliability and accuracy are deemed the most important factors to consider before scaling AI agents, while execution speed is ranked lower in priority. Fioretti notes that "Agentic ROI, in other words, is a discipline – not a calculation," highlighting the need for a thoughtful approach to evaluating the return on investment in AI technologies.
The combination of high investment ambitions and weaker implementation capabilities could lead to smaller deals, extended sales cycles, and delayed returns for EMEA businesses. The research underscores the necessity for organizations to adapt their AI strategies as they gather more evidence from deployments, rather than relying solely on initial forecasts.
As EMEA companies look to the future of AI adoption, the focus will shift from whether to invest in AI to how effectively they can establish the necessary financial controls, governance structures, data infrastructure, and human oversight to scale the technology successfully. The findings from IDC serve as a reminder that while the potential of AI is vast, realizing its benefits requires careful planning and execution.