83% of Enterprises Remain Stuck in Early-Stage AI Experimentation: Report Companies must move beyond AI experimentation and incremental iterations to build ecosystems that deliver deeper, more strategic value
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83 per cent of enterprises remain stuck in early-stage AI experimentation, despite growing urgency to modernize business models and drive strategic outcomes, according to a report titled 'Enterprises must embrace AI to reimagine their future, not tinker in the margins,' from HFS Research, in collaboration with LTIMindtree.
Initiatives often stall at the experimentation phase as organisations grapple with scaling challenges, unclear strategies, and a lack of ecosystem readiness. In fact, for one in two enterprises, many AI solutions remain at the experimentation stage (POC, pilot) and fail to scale. Although operational efficiency is widely cited as AI's primary role, productivity gains will soon become table stakes rather than a differentiator.
Based on a survey of over 500 Global 2,000 business and technology leaders across five major industries, the research finds that while most companies cite operational efficiency as the top driver for AI, just 17 per cent have integrated AI across their entire operations. In contrast, a growing number of enterprise leaders are calling for AI to serve as a lever for long-term re-imagination and reinvention.
"Most enterprises are still stuck fiddling with AI at the edges while convincing themselves they are transforming. They are not. What's becoming clear is that unless AI becomes central to how a business runs, competes, and delivers value, it will be irrelevant within three years. The winners aren't waiting around—they are tearing up legacy thinking and making AI everyone's problem, not just IT's," said Phil Fersht, CEO and Chief Analyst at HFS Research.
The report introduces a practical framework for Reimagination, Reinvention, and Relevance (R-R-R) – a strategic lens through which enterprise leaders can assess their AI readiness and chart a course toward transformation. LTIMindtree's perspective is featured as one example of how service providers can evolve their engagement models to support enterprise reimagination more meaningfully.
"The R-R-R framework is unique, especially when it has been decomposed to show exactly what it manifests into—this isn't an academic tale, it's an operational blueprint," said Rohan Kulkarni, Executive Research Leader at HFS Research and lead author of the report. "This study helps reset the AI narrative—away from hype, toward execution and accountability."
Some of the key findings from the report reveals that 51 per cent of enterprises plan to elevate AI to the C-suite or board level, signaling a shift from back-office experimentation to strategic governance. 43 per cent are actively seeking niche or non-traditional AI partners, citing the need for contextual, industry-specific innovation.
Enterprises are moving away from legacy success metrics like internal productivity, and toward measures such as ecosystem impact, customer relevance, and time-to-insight. AI is increasingly seen not just as a capability, but as the new form factor for enterprise identity.
"Our joint research with HFS highlights a critical shift – AI is no longer about pilots or marginal productivity gains. Its true potential lies in how enterprises orchestrate value across ecosystems and unlock new forms of business creativity," said Venu Lambu, CEO & Managing Director, LTIMindtree. "Enterprises are elevating AI to the boardroom, re-architecting operating models, and redefining outcomes. At LTIMindtree, we help clients embed AI at the core with BlueVerse, enabling transformation from experimentation to enterprise scale—with speed, trust, and impact," he added.
The report comes in the backdrop of a broader shift in the IT services landscape, as providers look to reposition themselves in a market that's demanding more than generic AI capabilities. The findings suggest an emerging playbook for enterprises seeking to move beyond incrementalism and toward true reinvention.
