New research from Avanade unveils mid-market organisation’s AI ambitions and pain points in workforce readiness, data governance, and technology infrastructure.
A new report from the company shows that mid-market organisations in Asia Pacific are embracing artificial intelligence with confidence, with most anticipating up to fourfold returns within 12 months.
However, gaps in workforce readiness, data governance, and technology infrastructure are key obstacles for mid-market organisations to achieve sustainable returns.
The report, Avanade Trendlines: AI Value Report 2025, draws on insights from 4,100 global business and IT decision-makers. Avanade commissioned independent market research firms McGuire Research Services and Vanson Bourne to undertake research to understand the mid-market’s experience in developing and implementing AI solutions and emerging technologies.
Across the two separate research projects, a total of 4,100 IT decision makers and senior business decision makers outside of IT were interviewed in August and September 2024 across Australia, Brazil, France, Germany, Italy, Japan, Netherlands, Spain, UK, and US.
Respondents worked for organisations with between USD500 million and USD5 billion global annual revenue in these industries: banking, consumer goods and services, energy, government, healthcare, life sciences, manufacturing, non-profit, and retail. The interviews were conducted online and were undertaken using a rigorous multi-level screening process to ensure that only suitable candidates were given the opportunity to participate.
Key findings from the report include:
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Strong enthusiasm for AI’s potential: Top goal for 2025 is the use of AI tools, like Microsoft Copilot, to drive new revenue while building a collaborative workplace culture;
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Increased budgets: 87% expect to increase their budgets for generative AI projects by up to 50%;
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Urgency from competitive pressures: 85% expressed concern over losing competitive advantage without rapid AI adoption, hence fast-tracking implementation is a top priority; and
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Essential AI groundwork still to be done: Nearly half are stuck at business case (48%) or proof of concept (44%) stage.
The report also underscores pressing concerns around technology infrastructure and data security, including 95% of leaders are fast-tracking plans to modernise legacy systems and 76% saying that poor data quality and governance inhibits AI progress.
With 94% citing sensitive data protection as critical, companies are stepping up investments in data governance, with 44% planning to implement new data platforms and 41% setting governance standards.
To support the scaling of AI, budgets will focus on data and analytics platforms (27%) automation (17%), as well as security and cyber resilience (15%).
To help mid-market organisations in Asia Pacific overcome these business challenges, Avanade has recently introduced seven new AI services that combine Avanade’s industry and technical expertise with Microsoft’s secure, AI-powered platforms and tools.
Designed with efficiency and agility in mind, the new services provide enterprise-grade innovation and technology at a scale that suits the size and needs of mid-market organisations. The new services are:
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Accelerate Revenue Generation: This service helps sales teams in mid-market organisations move beyond traditional CRM systems, equipping salespeople with AI-powered sales tools that increase productivity, improve customer engagement, and drive revenue;
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AI-Powered Migration and Modernisation: Designed to help mid-market organisations confidently navigate their cloud migration journey to Microsoft Azure, with Avanade providing expert guidance at every stage of the cloud journey. This comprehensive service mitigates business risk, tackles technical debt, optimises costs, and paves the way for a sustainable, AI-ready digital core;
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Build and Modernise AI Apps: Designed to help mid-market organisations create innovative and efficient AI-powered apps for specific business needs; transform legacy systems by integrating AI whilst enabling continuous improvement with scalable, flexible architectures; as well as build AIready foundations that address data silos and security challenges;
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Drive Business Transformation with Copilot: This service brings together value-based accelerators, industry and functional expertise, and responsible AI methods to help mid-market organisations unlock new sources of value and innovation through Microsoft 365 Copilot, while providing the proper safeguards and controls;
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Modernise ERP: This service helps mid-market organisations power business growth and adaptability, as well as reduce total cost of ownership, with a modern, AI-led ERP platform that enables new business models and revenue streams, faster time to market and better-informed decision making;
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Unify your Intelligent Data and Analytics Platform: Designed to help mid-market organisations overcome limitations of legacy technology, trust, and data estate complexity to reach AI ambitions as well as empower employees with better access to data and insights; and
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Unify Threat Protection: Designed to help mid-market organisations stay ahead of fast-moving threats and rapidly detect and investigate incidents. This service combines Microsoft Threat Intelligence, Sentinel SIEM, EDR and Security Copilot to enhance analysis and visibility, boost productivity and maximise investments.
“Asia Pacific is a dynamic economic region with its present and future success underpinned by factors such as diverse demographics, regional collaboration, and tremendous potential for high growth,” said Avanade’s Asia Pacific VP Bhavya Kapoor. “Coupled with rapid advancement in artificial intelligence and the region’s appetite for innovation, mid-market companies in Asia Pacific are at a pivotal juncture of their growth and transformation.”
“With the right partnership and strategic guidance, mid-market companies can leverage technologies like AI to unleash their potential and emerge as the next generation of market leaders and industry titans,” he added.
You can read the full report here.
