Do you have AI appeal?

While large enterprises have historically led the adoption of artificial intelligence (AI), medium-sized businesses (MBs) − defined here as companies with 100−999 full-time employees − are increasingly recognising AI as a strategic lever for growth, operational efficiency and differentiation. With a strong appetite for innovation and the organisational flexibility to implement change, these organisations are moving quickly to explore and deploy AI solutions.

In 2024, the MB segment spent nearly USD800 billion on technology. Approximately 10−15% of this expenditure was dedicated to AI projects and AI-enhanced business applications, and this share is expected to increase by 1.7 times over the next 12 months. This presents a significant and fast-growing revenue opportunity for technology companies across the value chain, including hyperscalers, software vendors and their partners (such as managed service providers), systems integrators and telecoms operators.

In this report, Analysys Mason examines how MBs are approaching AI – from deployment status to use cases, deployment models, benefits, vendor selection criteria and purchasing behaviour. The report also highlights best practices from early adopters that other organisations may look to replicate as they progress through their AI journey. These insights are based on a survey of over 600 organisations in Australia, New Zealand, the UK and the USA, supported by executive interviews with major technology players.

We hope these findings help global technology providers and their partners confidently position themselves for early success in the fast-moving AI market.