A new IBM study shows that enterprises across Europe, the Middle East, and Africa (EMEA) aren’t just experimenting with artificial intelligence—they’re already reaping serious results. According to the report “The Race for ROI,” 66% of surveyed organizations say AI has significantly improved operational productivity, with most expecting a full return on investment (ROI) within a year.

Yet, while large corporations seem to be sprinting ahead, small and mid-sized enterprises (SMEs) and public sector organizations are still catching their breath.

Big Players Are Winning the Early AI Productivity Race

The research—conducted by IBM in partnership with Censuswide—surveyed 3,500 senior executives across 10 EMEA countries. Two-thirds of respondents said AI had already improved productivity across their operations. Roughly 20% reported they’ve already achieved ROI goals, while another 42% expect to do so within 12 months.

Those returns aren’t limited to cutting costs or saving time. Executives point to AI’s impact on broader outcomes like employee satisfaction, decision-making, and even customer sentiment (as reflected in higher Net Promoter Scores).

Still, the gap between organizations is striking. While 72% of large enterprises have seen productivity gains from AI, that figure drops to 55% for SMEs and public sector bodies—suggesting that access, talent, and infrastructure continue to define who wins the AI race.

Where AI Is Delivering the Most

The biggest gains are emerging in software development, IT operations, and customer service, where AI is streamlining workflows, automating routine tasks, and shortening delivery cycles. Procurement and finance are following close behind.

Executives say the top benefits of these boosts include operational efficiency (55%), better decision-making (50%), and improved workforce productivity (48%)—proof that AI isn’t replacing employees but rather freeing them to focus on higher-value work.

That’s also reflected in how companies are spending their “time saved.” According to the study, employees are devoting more hours to innovation (38%), strategy (36%), and creative problem-solving (33%). In other words, AI is starting to automate the mundane so people can think big again.

Agentic AI and the Shift from Automation to Transformation

One of the more forward-looking findings involves agentic AI—AI systems capable of acting autonomously within business processes. An overwhelming 92% of business leaders expect measurable ROI from these agent-driven systems within two years.

What’s particularly interesting is how many companies are no longer just automating existing steps but redesigning entire value streams around AI. Around a third of respondents are already shifting toward continuous, AI-driven decision-making and using machine intelligence to accelerate innovation cycles.

For about a quarter of those surveyed, AI has already fundamentally changed their business models. That’s a major leap from the early hype phase to genuine digital reinvention.

The Barriers: Complexity, Security, and Trust

Of course, this momentum isn’t without friction. About 68% of executives cite data security, privacy, and ethical concerns as the top barriers to scaling AI—closely followed by the challenges of integrating AI with legacy systems.

Enterprises are calling for transparency (85%), interoperability (84%), and flexibility (85%)—clear signals that businesses want AI on their terms. They don’t want to be locked into black-box systems or single vendors; they want to build AI ecosystems that evolve with them.

Building the Foundation for Sustainable AI ROI

IBM’s report outlines five key actions for leaders looking to accelerate AI-driven returns:

• Create a unified AI operating model, whether federated or hub-and-spoke, with clear accountability.
• Build AI literacy at every level, from the boardroom to frontline staff.
• Embrace uncertainty and rapid change, since AI will soon touch every business interaction.
• Strengthen AI governance, ensuring compliance and ethical oversight.
• Establish an AI Board to manage risks and define responsible use policies.

These recommendations echo what we’ve seen from other industry leaders. For instance, McKinsey’s State of AI 2025 report found that companies with a “centralized AI governance framework” were twice as likely to report ROI above 10%. Similarly, PwC’s AI Business Outlook 2025 highlighted AI literacy as the top predictor of sustained productivity gains.

The Bottom Line: From Pilot Projects to Profit Engines

The message from IBM’s “Race for ROI” is clear: EMEA enterprises have moved beyond proof-of-concept. AI is now a measurable productivity engine—at least for those who can scale it effectively.

But here’s the crucial insight: The winners won’t just be those who automate faster, but those who govern smarter. Transparency, interoperability, and autonomy are the next frontiers of AI advantage.

Compared to U.S. counterparts—who tend to focus on speed and scale—EMEA firms are leaning into responsible AI growth, balancing innovation with regulation and trust. It’s a slower burn but potentially a more sustainable one.

As IBM’s Ana Paula Assis puts it, the real value of AI “goes far beyond individual productivity—it’s about strategic transformation.” And for EMEA enterprises ready to embrace that mindset, the race for ROI may have only just begun.