Klarus, a specialist technology consultancy with a focus on artificial intelligence (AI), has published new research showing that mid-market companies in the UK and Ireland are embracing AI but practical expertise, data quality and governance are holding many back from scaling beyond pilot stage. The report, based on a survey of 500 senior decision makers at mid-market companies, found that almost three quarters (73%) of companies have partially or fully deployed AI but there is a clear gap between perceived expertise and ability to deliver.
73% of mid-market companies have partially or fully deployed AI.
91% confident in internal expertise, yet lack of expertise is top reason pilots stall (48%).
83% experience poor data quality; 69% say it delays or prevents AI activity.
Only 10% have successfully scaled all AI initiatives beyond pilot stage.
45% say AI enables junior staff to work better or faster.
24% say AI is creating new roles and opportunities.
On average, 91% of mid-market companies are confident in their internal expertise across all areas of AI deployment, yet lack of AI expertise was the joint top reason projects failed to move beyond pilot stage, cited by 48% of respondents that had explored AI. That 39% of respondents highlight building internal expertise as one of their top priorities for AI over the next 12 months suggests companies are recognising that confidence needs to translate into execution capability.
The research found that many mid-market companies continue to struggle with technology and data foundations. Alongside lack of expertise, concerns around guardrails, including governance, ethics, security and privacy, were also cited by 48% as a primary reason for stalled pilots. More than half (59%) have yet to establish a comprehensive AI governance framework. Among those that have piloted or deployed AI, 83% experience poor data quality and 69% say it is preventing or delaying their AI activities.
The research highlights the impact of AI on talent beyond automation and headcount reduction. When asked the impact AI is mostly having on junior staff, nearly half (45%) say it is enabling them to do their job better or quicker and 24% say it is creating new roles and opportunities.
Alper Gunaydin, CTO at Klarus, stated: "Mid-market companies have a real advantage because they can often move fast. However, our research shows that too many pilots stall because companies lack AI expertise, quality data and effective governance. Making that agility count requires clear priorities, strong foundations and access to senior expertise."
Tim Flagg, CEO of UKAI, added: "The findings come as AI adoption becomes a central priority, with UK government policy now focused on closing the productivity gap by embedding AI across businesses. While tech giants often dominate headlines, it is the mid-market that will be the true driver of this transition."
About Klarus
Headquartered in London, Klarus is a specialist technology consultancy dedicated to closing the implementation gap between AI potential and tangible ROI. The firm replaces the traditional consultancy pyramid with a global network of hand-selected, senior experts who combine deep sector knowledge with technical proficiency. Services cover the full breadth of technology transformation, including data, enterprise applications and cyber.
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