AI Use Cases Double Though Business Outcomes Lag Ambition: ISG Study

The findings were presented at the 2025 ISG Sourcing Industry Conference, a premier annual event for service and technology providers. The third annual *ISG State of Enterprise AI Adoption* report not only highlights the current state of the AI market but also maps out a strategic roadmap for large-scale AI adoption. Additionally, the report introduces a new pricing model for agentic AI services, aiming to better align costs with value delivered.

According to ISG's global survey involving 400 senior AI decision-makers, organizations are increasingly leveraging AI's capabilities for pattern recognition and outcome prediction. The integration of Generative AI (GenAI) and agentic AI tools is becoming more prevalent as companies enhance their data readiness and governance.

While enterprises are deploying AI at a faster rate, the business results have been inconsistent. The report states that 31% of organizations have successfully brought at least one of their top three most-funded AI use cases into production—a notable increase from the previous year. However, many of these initiatives are primarily focused on compliance, risk management, and quality control, rather than directly targeting revenue growth or cost reduction.

Steve Hall, Chief AI Officer at ISG, noted, “Companies are investing in the areas of AI that are demonstrating near-term results but also experimenting with a broader range of use cases.” This indicates a shift from merely improving efficiency towards engaging high-value functions that support business growth, despite the lack of substantial results in this domain so far.

A major highlight of the report is the rise of autonomous AI agents, which are reshaping corporate perspectives on the cost of AI. Traditional pricing models have often left clients grappling with the challenge of correlating price with value. In response, ISG proposes a new framework for pricing AI services based on the level of autonomy, allowing charges to reflect the nature of work performed rather than just the output delivered.

Hall emphasized the importance of this new pricing strategy, stating, “By classifying services according to their intelligence and independence, this autonomy level pricing framework delivers clarity and fairness to the market.” He anticipates that this model will redefine the contracting of AI services, enabling businesses to capitalize on the benefits of increasing automation as AI technology continues to evolve.

Despite the advancements, successful AI deployment still hinges on critical foundational elements that enterprises must address before moving pilots into production. The research highlights the importance of synchronizing the platforms that support model development, the software that integrates AI, and the services that connect these components. The efficacy of these elements working together is more crucial than the presence of any individual layer.

Hall remarked, “AI is still in its early innings,” signifying that many core technologies being scaled today are relatively nascent, with agentic AI having only been in the market for 15 months. He noted that few technologies have transitioned from early commercial availability to full production, delivering measurable value as swiftly as AI has.

The *ISG State of Enterprise AI Adoption* report underscores a pivotal moment for enterprises as they navigate the complexities of AI deployment. While the doubling of prioritized AI use cases signifies progress in adoption, the uneven business outcomes highlight the need for strategic alignment and innovative pricing models. As organizations continue to experiment and enhance their AI capabilities, they may very well unlock the potential for greater operational excellence and growth in the years to come.

For further insights, additional information on the ISG State of Applied Generative AI Market report is available on the ISG website.