A new Lenovo-commissioned study conducted by IDC reveals that global organizations are significantly increasing AI investments, but concerns over return on investment (ROI) remain a primary barrier to broader adoption. The 2025 CIO Playbook: It’s Time for AI-nomics reports that AI spending is expected to nearly triple in 2025 compared to last year, yet business leaders remain divided on its long-term value.
Key Findings: AI Investment and ROI Challenges
While AI adoption is accelerating, financial risk and uncertain ROI remain the most cited obstacles. The study found that 37% of management remains skeptical or has reservations about AI’s impact, despite 90% of IT professionals stating that AI has met their expectations.
Organizations are increasing their AI budgets, with AI expected to account for 20% of tech spending in 2025. Generative AI (GenAI) adoption is also projected to expand, growing from 11% to 42% within the next year, with the highest application levels expected in IT operations, software development, and marketing.
Organizational Readiness and Ethical Concerns
Beyond financial uncertainty, organizations face readiness challenges in AI implementation. More than half of businesses lack an AI Governance, Risk, and Compliance (GRC) policy, even as ethical concerns around AI and machine learning persist. To fully leverage AI, organizations must upskill employees, modernize IT systems, and establish ethical frameworks to navigate responsible AI use.
Data Quality and AI Failures
The study highlights data quality as a critical success factor for AI implementation. Data sovereignty, compliance, and accessibility were identified as essential components, while poor data quality, high IT costs, and integration challenges were the leading causes of AI failures. To mitigate these issues, 33% of organizations plan to develop data management capabilities within the next year.
The Role of AI Partnerships
The report finds that lack of skilled expertise is the top reason organizations hesitate to invest in AI, emphasizing the need for strategic partnerships. Businesses recognize that working with AI-capable partners is key to successful AI deployment.
“To harness AI’s transformative power, organizations need a data-driven strategy that ensures scalability, interoperability, and tangible business outcomes,” said Ashley Gorakhpurwalla, President, Infrastructure Solutions Group, Lenovo. “At Lenovo, we believe a hybrid approach to AI—seamlessly integrating and enabling private and public models—is essential for delivering scalable solutions, driving measurable impact, and accelerating AI-powered business transformation.”
AI’s Future: Strategic Investment with Measured Optimism
Despite aggressive AI investment plans, Lenovo’s study suggests that businesses remain cautious about AI’s long-term financial returns. As organizations work to address ROI concerns, data quality issues, and workforce readiness, AI adoption will depend on demonstrating measurable business value. Lenovo’s findings underscore the need for a balanced approach to AI investments, ensuring both technological innovation and financial viability.
Image: Envato
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