Middle Market Firms Embrace AI: RSM Survey

Middle market firms are increasingly adopting generative AI to enhance their operational strategies, according to the 2025 RSM Middle Market AI Survey. The survey, conducted by RSM US LLP, reveals that 91% of respondents are now using generative AI in their business practices, a significant increase from 77% in the previous year. This trend highlights the growing importance of AI in shaping the future of middle market organizations in the U.S. and Canada.

The survey underscores a strategic commitment to AI among middle market companies. Of the organizations using AI, 79% reported having a defined strategy for its adoption, with 37% claiming a well-formulated approach. Notably, one-quarter of respondents stated that generative AI is fully integrated into their core operations and workflows, demonstrating a deepening reliance on these technologies.

Generative AI is delivering tangible benefits to middle market firms. Half of the respondents reported streamlining IT projects, while 45% cited time savings in data analytics applications. Additionally, 39% experienced efficiencies in customer service processes. These improvements underscore how AI automates routine tasks, allowing employees to focus on higher-value work and boosting overall productivity and operational efficiency.

Challenges and Support in AI Adoption

Despite the enthusiasm for AI, the survey highlights challenges in optimizing these technologies. Rhys Morgan, Consulting partner and North American CIO Services lead at RSM, emphasized that AI works best when complementing human ingenuity. Companies must upskill their workforce and implement oversight and AI governance measures to capitalize on AI's potential while mitigating risks.

The need for external support is evident, with 70% of middle market firms using generative AI recognizing this requirement. Of the 76% with a dedicated budget for AI investments, 47% allocate funds for AI consulting services, indicating a reliance on specialized expertise to navigate the complexities of AI integration.

Differences Between U.S. and Canadian Firms

The survey reveals distinct experiences and preparedness levels between Canadian and U.S. companies. While both regions are embracing AI, the report suggests that Canadian firms may face unique challenges in AI adoption compared to their U.S. counterparts. These differences highlight the need for tailored strategies to address regional nuances in AI integration.

Future Outlook and RSM's Commitment

The survey findings reflect that while AI adoption is accelerating, many middle market companies are still navigating strategy, integration, and governance. RSM has committed $1 billion over the next three years to technology and AI innovation, aiming to enhance its ability to guide clients through AI transformation while accelerating its own use of responsible AI across service lines.

The survey, conducted by Big Village, included 966 respondents, with 762 in the U.S. and 204 in Canada. Participants were required to have decision-making authority or significant influence on technology investments at their organizations. The survey was conducted online from February 21 through March 4, 2025, with a margin of error of +/- 3.2%.