EMEA spending on AI set to double

Business leaders and IT decision makers in EMEA report the highest satisfaction with AI projects globally in the last 12 months, fuelling a 104% increase in expected AI investments this year, according to new research from Lenovo. The AInomics CIO Playbook 2025, with research insights from IDC, found that while investment and confidence in AI continue to grow, critical challenges remain around training staff, poor data quality and scaling initiatives.

The research, undertaken with 620 business leaders and IT decision makers from mid to large-sized businesses across EMEA, uncovered that 94% of AI projects undertaken in the last 12 months at least met expectations, and nearly a third (31%) exceeded them, double the rate reported in North America (16%). The region is also the most optimistic around AI, with 55% of management teams positive about its potential, within which 10% are ‘highly enthusiastic’.

Generative AI driving AI investment growth areas

With this satisfaction comes a change in priorities around AI investment, as businesses grapple with where it will have the biggest impact. Generative AI will be the primary AI focus for the next 12 months, increasing nearly fourfold from 12% to 44%, at the expense of the focus given to predictive and interpretive AI platforms.

Looking at other AI technologies, AI embedded applications were the biggest investment area over the last year. Now, businesses are focusing their spending on developing and managing AI models (32%), up 10% compared to the previous 12 months. This comes as the proportion of IT budgets allocated to AI swells from 13% to 20%. Interest in AI Professional Services is also increasing amongst businesses in the region, shifting beyond current usage of 27% with a further 72% exploring (19%) or planning (53%) to implement such tools.

The big upswing in Generative AI reflects a trend of successful pilots and projects over the last year. While previous studies reported concerns around capability limitations of AI models, these look to have been overcome and businesses now feel comfortable forging ahead with deployments and reaping the benefits of the technology.

Data challenges pose obstacles for AI implementation

Despite the enthusiasm and increases in adoption, more work is needed to realise the full potential of AI in EMEA. Where AI projects are not meeting expectations, the top reasons for this were challenges scaling AI (30%) and data quality issues (29%). While 46% of EMEA businesses have AI governance, risk and compliance (GRC) policies in place, 26% report that enforcement is limited and 22% of businesses in the region have no plans to establish an AI GRC, the highest regional proportion globally.

Greg Smith, Executive Director and General Manager, EMEA Lenovo Solutions & Services Group said: “With enthusiasm around AI high in the region, businesses must work hard to overcome barriers to its adoption and integration to avoid disillusionment and drive return on investment. Leaders are quickly growing in confidence and looking to diversify their approach with models like AI-as-a-Service. Leveraging the right expertise and professional services will help maximise the successes that AI can bring, opening the door for targeted adoption that helps solve business challenges and drive growth.”

To overcome these hurdles, businesses are facing four equally pressing factors in ensuring successful AI implementation: data sovereignty and compliance (32%), the ease of integrating AI with existing systems and processes (32%), employee training and upskilling (31%) and the ready availability of quality data (31%).

Hybrid infrastructure is key for AI

When it comes to the hardware powering AI in enterprise, 65% of organisations across EMEA are using on-prem or hybrid as their primary architecture, followed by 18% that are using public cloud. Additionally,10% of EMEA organisations have already extensively used AI PCs, 25% are currently piloting AI PCs, with a further 65% planning on or evaluating integrating the devices soon to maximise their AI capabilities.

Giovanni Di Filippo, President of EMEA, Infrastructure Solutions Group at Lenovo explained: “The EMEA markets present a diverse landscape of AI adoption and it is clear that most organisations have moved past the hype phase of AI and have shifted focus from experimentation to full implementation. As organisations across EMEA look to move into AI growth areas, their preference for a mixture of on-prem and hybrid AI hardware is driven by the need to retain control over data security and privacy, crucial for handling sensitive information and ensuring regulatory compliance.”

Preben Fjeld, VP and General Manager Personal Computing Devices Services, Lenovo EMEA commented: “Businesses are increasingly prioritising technology that supports AI-driven workforce productivity, and 2025 will mark a major shift in AI PC implementation as organisations move from piloting to implementing new devices. With the availability of AI PCs and edge devices being a top factor for successful AI implementation, success can only come from a coherent, joined up AI strategy.”