Enterprises are ramping up investments in data and AI initiatives, yet many are struggling to realize expected benefits due to technological and operational challenges, according to the ISG Market Lens™ Data and AI Programs study released on June 30, 2025. The study highlights that complexity in data infrastructure and a persistent talent shortage are significant barriers to achieving AI-driven insights and efficiency.
Despite flat overall IT budgets, three-quarters of enterprises plan to increase spending on data quality, integration, and security over the next two years, with a focus on driving business value from insights. “Data is the growth area for IT, especially to support adoption of AI,” said Alex Bakker, ISG distinguished analyst and co-author of the study. However, the study finds that high investments in areas like productivity and data quality have not yet delivered strong results, with only 43% of firms achieving consistent data structures critical for AI success.
The complexity of integrating and updating data infrastructure across thousands of applications remains a significant hurdle. Over two-thirds of enterprises identify managing this complexity, rather than a lack of innovation, as the primary obstacle to data and AI progress. “Data is seen as a key driver for both revenue growth and profitability, but inflexible design and ineffective tools to expose or share data are holding enterprises back,” said Michael Dornan, principal analyst and co-author of the study. No single data category—financial, employee, or IT—has been fully integrated into centralized platforms at most firms.
A lack of skilled professionals with both technical expertise and industry knowledge is a critical barrier, with 26% of enterprises citing talent shortages as the biggest delay in scaling data initiatives. The ISG study aligns with findings from a Bain & Company report, which warns of a growing AI talent gap, projecting that up to 70% of AI job openings in Germany could remain unfilled by 2027. Enterprises are struggling to find talent capable of bridging technical AI skills with business domain expertise.
To tackle these issues, enterprises plan to boost spending on outsourced data services by an average of 7% over the next two years, with 60% engaging new providers. These providers are sought for their expertise in data organization, design, and AI productivity, offering multidisciplinary talent to overcome complexity and skill gaps. This shift reflects a growing reliance on managed service providers to deliver scalable, business-focused data solutions in the AI era.
The ISG study underscores that while enterprises see data and AI as critical for growth, significant barriers—complexity, inconsistent data structures, and talent shortages—are slowing progress. By prioritizing centralized governance and leveraging external expertise, organizations aim to unlock the full potential of AI-driven insights and efficiency in 2025 and beyond.
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.
TechIntelPro empowers B2B technology decision-makers with the latest industry trends, deep insights, leadership perspectives and actionable intelligence to drive both organizational and professional milestones—and thrive on the tech pulse.