Middle Market AI Survey 2025

RSM Middle Market AI Survey 2025: Insights into AI Adoption

Artificial intelligence (AI) is rapidly transforming business operations, and the middle market is at the forefront of this transformation. The RSM Middle Market AI Survey 2025: U.S. and Canada offers a comprehensive look at how AI is being integrated into middle market business practices. Conducted by RSM and Big Village from February 21 to March 4, the survey gathered responses from 966 decision-makers, providing valuable insights into the trends, challenges, and opportunities associated with AI adoption in this sector.

AI Adoption in the Middle Market

The middle market is leveraging AI to drive innovation and enhance operational efficiency. According to the survey, generative AI is widely adopted across the middle market, with businesses actively working to fully integrate it into their operations. However, many organizations face significant challenges, particularly concerning data quality and the lack of necessary expertise to effectively utilize AI.

A striking 91% of respondents reported that their organizations are using generative AI. Among these, 25% have fully integrated it into their core operations, while 43% have integrated it into some aspects of their business. For those facing issues with AI implementation, 41% cited data quality as the primary concern, and 39% pointed to a lack of internal expertise as the main barrier.

The most common application of AI is text generation and summarization, with nearly half (49%) of generative AI users employing it for this purpose. Workflow development follows closely, with 45% of users leveraging AI for this task. Notably, 50% of generative AI users reported that it has significantly reduced the time required for IT projects, and it has also saved time on data analytics (45%) and customer service (39%).

Challenges and Opportunities

While AI adoption is on the rise, organizations face several challenges in its implementation. Over half (53%) of organizations that have implemented generative AI feel only somewhat prepared for its integration. Additionally, 10% feel either not very prepared (9%) or not at all prepared (1%). Key concerns include data quality, privacy, security, and insufficient internal resources.

Despite these challenges, companies using generative AI generally report a positive impact, with 88% stating that it has exceeded their expectations. Regardless of their geographical scope, organizations are keen to stay updated on regulations affecting their AI usage. The most common approach is following industry publications or thought leaders, with 40% of generative AI users adopting this method. Additionally, 36% stay informed by attending conferences, webinars, or training programs on AI legislation, and another 36% are establishing internal teams to review and share updates on AI regulations.

AI requires continuous monitoring and validation, and companies are preparing their employees through workshops, certifications, AI literacy programs, and education on the safe and ethical use of AI. Organizations recognize AI’s potential to enhance productivity and efficiency, freeing employees from manual tasks and allowing them to focus on projects that require human creativity.

The RSM Middle Market AI Survey 2025: U.S. and Canada provides valuable insights into the impact of AI on the middle market. As organizations continue to adopt AI, they must navigate the associated challenges to fully realize its potential.