A new report from HFS Research and LTIMindtree reveals that 83% of enterprises are stuck in early-stage AI experimentation, despite the urgent need to modernize business models. The study, based on insights from over 500 Global 2000 leaders, emphasizes the necessity for AI to drive strategic transformation rather than marginal improvements.
83% of enterprises remain in early AI experimentation, limiting strategic impact.
Only 17% have integrated AI across their entire operations.
51% plan to elevate AI to C-suite or board level for strategic governance.
43% seek niche AI partners for industry-specific innovation.
Enterprises are shifting focus to ecosystem impact and customer relevance.
AI is seen as a new form factor for enterprise identity and competitiveness.
The report, titled “Enterprises must embrace AI to reimagine their future, not tinker in the margins,” highlights that while operational efficiency drives AI adoption, only 17% of enterprises have fully integrated AI into their operations. This gap underscores a critical need for businesses to move beyond pilot projects and embed AI as a core strategic component. The study, surveying 504 Global 2000 leaders across five industries, notes a growing demand for AI to reimagine business models rather than merely optimize existing processes.
“Most enterprises are still stuck fiddling with AI at the edges while convincing themselves they're transforming. They're not. What’s becoming clear is that unless AI becomes central to how a business runs, competes, and delivers value, it’ll be irrelevant within three years. The winners aren’t waiting around—they’re tearing up legacy thinking and making AI everyone's problem, not just IT’s,” said Phil Fersht, CEO and Chief Analyst at HFS Research.
The report introduces the Reimagination, Reinvention, and Relevance (R-R-R) framework, a strategic tool for assessing AI readiness and driving transformation. This framework guides enterprises to align AI initiatives with long-term business goals, moving away from short-term efficiency gains. LTIMindtree’s approach, highlighted in the report, exemplifies how service providers can support enterprises in this shift by offering tailored, industry-specific AI solutions.
“The R-R-R framework is unique, especially when it has been decomposed to show exactly what it manifests into—this isn’t an academic tale, it’s an operational blueprint,” said Rohan Kulkarni, Executive Research Leader at HFS Research and lead author of the report.
The study reveals that 51% of enterprises plan to elevate AI discussions to the C-suite or board level, signaling a shift toward strategic governance. Additionally, 43% are seeking niche or non-traditional AI partners to deliver contextual, industry-specific innovation. Enterprises are also redefining success metrics, moving away from traditional productivity measures toward outcomes like ecosystem impact, customer relevance, and time-to-insight. This reflects AI’s evolving role as a cornerstone of enterprise identity and competitiveness.
“Our joint research with HFS highlights a critical shift—AI is no longer about pilots or marginal productivity gains. Its true potential lies in how enterprises orchestrate value across ecosystems and unlock new forms of business creativity,” said Venu Lambu, CEO & Managing Director, LTIMindtree.
As the IT services landscape evolves, enterprises must prioritize AI-driven reinvention to stay competitive. The report’s findings offer a clear playbook for moving beyond incrementalism, urging businesses to embed AI at their core. By leveraging strategic frameworks like R-R-R and partnering with innovative providers, enterprises can unlock AI’s full potential to redefine their future.
HFS Research is a leading research and advisory authority on enterprise transformation, serving Fortune 500 companies with fearless insights and actionable strategies. With unparalleled access to Global 2000 executives and deep expertise in AI, automation, and digital business models, HFS empowers organizations to make confident decisions that create sustainable competitive advantage. For more information, visit hfsresearch.com.
LTIMindtree is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation, and maximize growth by harnessing digital technologies.
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.