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The number of prioritized enterprise AI use cases in production has more than doubled since 2024, as companies transition proven pilots to full deployment and explore business-specific initiatives, according to ISG's 2025 State of Enterprise AI Adoption report. This global survey of 400 senior AI decision makers reveals accelerated scaling of AI, including GenAI and agentic AI tools, driven by improved data readiness and governance, though business outcomes remain inconsistent.
ISG's research indicates enterprises are leveraging AI's pattern recognition and predictive capabilities while integrating GenAI and agentic tools. Scaling is faster in areas like compliance, risk management, and quality control, focusing on process strengthening rather than direct revenue or cost impacts. However, high-value functions such as customer relationship management automation, sales enablement, forecasting, and lead capture are emerging priorities, despite limited success in driving growth.
“Companies are investing in the areas of AI that are demonstrating near-term results but also experimenting with a broader range of use cases,” said Steve Hall, Chief AI Officer at ISG. “The variety of AI use cases that are unique to companies’ industries and data contexts shows just how much opportunity there is.”
Only one in four initiatives achieves expected revenue impact, with many falling short on cost savings. Successful deployment hinges on coordinating platforms for model development, embedding software, and connecting services, emphasizing ecosystem integration over isolated layers.
The report introduces a new pricing framework for agentic AI services, classifying them by autonomy levels to ensure charges reflect work performed rather than outputs alone. This model promotes market clarity and fairness as AI automation advances.
“By classifying services according to their intelligence and independence, this autonomy level pricing framework delivers clarity and fairness to the market,” Hall said. “ISG expects this model to define how AI services are contracted so businesses can benefit from increasing automation as AI technology continues to progress.”
AI remains in early stages, with core technologies under five years old and agentic AI just 15 months into market availability. Enterprises embracing rapid experimentation are seeing rewards, but sustained value requires addressing data and governance foundations.
Additional details on the ISG State of Applied Generative AI Market report are available on the ISG website.
ISG is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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