This report identifies key demand-side trends in the applied AI services space to assist enterprises in their AI journeys. It provides an overview of key trends and enterprise challenges that Avasant considers important to highlight in the applied AI services space.
Why read this Market Insights?
Enterprise AI adoption is gaining momentum, with banking, manufacturing, telecom, and media driving nearly half of all initiatives. Organizations are primarily leveraging generative AI (Gen AI) to optimize business functions such as software development and customer engagement. Eighty percent of firms are pivoting toward a platform-based integration model and leveraging Gen AI through trusted ERP, CRM, and HCM systems. While interest in agentic AI is growing, production deployments remain limited, primarily due to unresolved governance and decision-making challenges.
The Applied AI Services 2024–2025 Market Insights™ aids enterprises in identifying important market trends and challenges for their AI transformation projects.
Methodology
The industry insights and recommendations presented are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, along with lessons learned from consulting engagements.
Table of contents
About the report (Page 3)
Executive summary (Pages 4–7)
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- Defining applied AI services
- Key enterprise applied AI services trends shaping the market
- Avasant recognizes 24 top-tier providers supporting the enterprise adoption of applied AI services
Demand-side trends (Pages 8–16)
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- While total AI projects increased by 25% in 2024, only 31% advanced beyond pilot and proof-of-concept (POC) stages, mainly due to experimentation with multimodal and agentic AI.
- Fifty-two percent of enterprises are leveraging Gen AI to optimize business workflows and boost productivity, particularly in software development, content creation, and customer experience management.
- In contrast, only 11% are exploring monetization opportunities backed by new subscription models and tailored B2B offerings for specific regions and industries, such as Saudi Aramco’s industrial large language models (LLMs) and KT Group’s Korea-specific Gen AI deployment service.
- The agentic AI ecosystem is experiencing rapid growth, with over 500 firms entering the space. They are developing and utilizing multipurpose agents, industry-specific agents, orchestration tools, and low-code development platforms.
Key contacts (Page 17)
Read the Research Byte based on this report. Please refer to Avasant’s Applied AI Services 2024–2025 RadarView™ for detailed insights on the service providers and supply-side trends.