AI will transform core business models within the next two years

The report delves into the impact of the digital shift and explores how organisations are navigating this change and preparing for the future.In partnership with Censuswide, Endava surveyed 350 business and technology leaders across the US, EMEA and APAC to uncover their views on the digital shift and the role AI plays in reshaping business models.

Key findings include:

The impact of the digital shift: 98% of respondents have seen their core business model impacted by the digital shift. 37% are exploring new markets, while 24% say their organisation’s mission or purpose has evolved as a result.

AI’s role in reshaping core business models: 97[1]% of business leaders surveyed believe AI will transform core business models within the next two years. 31% believe AI will drive their organisation into new markets, 31% say it will help them focus on a unique selling proposition (USP) to differentiate from competitors, and another 24% say AI hasl impacted their core purpose.

The pressure to deliver: Business and technology leaders are under pressure to demonstrate AI’s value. More than half (53[2]%) express concerns that if AI projects fail, their stakeholders or board will lose confidence in AI's potential. Additionally, 18% cite a lack of clear ROI as one of the top challenges in implementing and scaling AI solutions.

AI for creativity is untapped: 45% of respondents say their company uses AI to automate processes and repetitive tasks, but only 23% are leveraging AI to design new products. This highlights the vast untapped potential of AI, suggesting that while it is currently utilised for routine tasks, it holds promise for driving creativity in the future.

The talent gap remains a major roadblock: 41% of organisations cite a lack of skilled AI talent as the biggest challenge in implementing and scaling AI solutions. Respondents also noted it as the second highest barrier to digital modernisation efforts (36%).

Technology leaders are setting the pace: Business and technology leaders surveyed have different perspectives on AI readiness, with technology leaders (96%2) feeling more confident than their business counterparts (83%2). 86[3]% of technology leaders say their organisation integrates AI within its workforce to drive innovation and productivity effectively, compared to 74%3 of business leaders.

AI will soon be indispensable: There’s a clear consensus that AI is becoming essential to business success. On average, respondents believe AI will become indispensable to their organisation’s survival by 2030[4]. More than 3 in 5 (62%[5]) say this will happen within the next five years, and 11% already consider AI as critical.

Endava CTO, Matt Cloke, commented: "Just as digital transformation shapes entire industries, AI is set to redefine how businesses operate, innovate and succeed. This isn’t about surface-level tool enhancements; AI must be embedded at the core of an organisation to drive meaningful change. The businesses that recognise this shift and integrate AI as a fundamental part of their strategy, will be the ones shaping the future. AI is no longer a ‘nice to have’ – it is the engine powering the next wave of business transformation”.