Avanade: Mid-market wants to consume AI but needs help

Mid-market organisations are keen to embrace artificial intelligence (AI), but have revealed they face a number of obstacles.

According to the Avanade trendlines: AI value report 2025, there is a strong appetite among customers to use AI, with Microsoft Copilot identified as an area of investment for 2025.

The Microsoft partner also lifted the lid on issues that could be holding customers back, with gaps in workforce readiness, data governance and tech infrastructure all causing headaches. This list should signpost areas where the channel can make a positive difference and guide customers through challenges.

The key findings from the research included an indication that budgets were increasing, with half of customers looking to increase the money available for generative AI (GenAI) projects.

The sense that failing to adopt AI would affect competitiveness was also a widespread concern, with 85% of respondents worried they would lose ground to rivals if they did not move soon on AI.

Mid-market users told the channel player that they continued to be concerned about poor data quality, with many recognising that they needed to improve their governance standards and data protection. The research indicated that many customers are still at early stages, with nearly half at the business case or proof of concept stage.

“Mid-market leaders are at a defining moment with AI where investments must not only boost efficiency, but ignite future innovation and sustainable growth,” said Rodrigo Caserta, CEO of Avanade.

“The tension between cost-cutting and growth ambitions shows the AI value equation is still being worked out. Productivity with AI isn’t just about doing things faster; it’s about reimagining work itself,” he added.

Caserta said that customers had to get staff prepared for AI if it was going to be adopted, used and generate business benefits.

“People are central to this shift, requiring workforce alignment, clear communication, and new training. Leaders must rethink how they support collaboration, measure productivity and, ultimately, assess the true value AI brings to their organisations,” he said.

The research confirmed market conditions that Avanade was already responding to, with the channel player rolling out a set of solutions aimed at the mid-market customer base. It has introduced services that help with workplace readiness, data governance and protection and modernising infrastructure.

Jason Hunt, global client solutions lead at Avanade, said that it was able to help customers overcome the main obstacles holding back further AI adoption: “For mid-market companies with ambitious AI goals, balancing cost-efficiency with workforce readiness and a strong tech foundation is critical. Our new suite of services is built to help them achieve tangible ROI and foster a culture of innovation and sustainable growth.”

Others across the channel, particularly Microsoft’s leading partners, have also been reacting to an increased demand for AI tools such as Copilot.

Speaking to MicroScope last month, Rob Young, CEO at Infinity Group, underlined the need for users to engage with AI and roll it out across their organisations to truly identify where it can make a difference. “A lot of customers are very inquisitive about AI and Copilot, and there’s different levels of that, and we’re seeing people consume the licenses now,” he said.