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AI Use Cases Double Though Business Outcomes Lag Ambition: ISG Study

By: via Business Wire

New ISG research finds companies have doubled the number of AI use cases in production and broadened development of unique applications

The number of prioritized enterprise AI use cases in production has more than doubled since 2024, as enterprises put proven pilots into production and pursue experiments with business-specific initiatives, according to a new research report from Information Services Group (ISG) (Nasdaq: III), a global AI-focused technology research and advisory firm.

ISG will present the findings of its latest ISG State of Enterprise AI Adoption report here today at the 2025 ISG Sourcing Industry Conference, the premier annual event for service and technology providers. The third annual report delivers a current state of the market and a roadmap for adopting AI at scale. It also frames a new pricing model for agentic AI services.

The global survey of 400 senior AI decision makers finds they are leveraging AI’s ability to recognize patterns and predict outcomes while layering in GenAI and agentic AI tools as their organizations’ data readiness and governance improve. While enterprises are scaling AI faster, their business results remain uneven, with only one in four initiatives meeting expectations for revenue impact, and many failing to produce broad cost savings.

“Companies are investing in the areas of AI that are demonstrating near-term results but also experimenting with a broader range of use cases,” said Steve Hall, Chief AI Officer, ISG. “The variety of AI use cases that are unique to companies’ industries and data contexts shows just how much opportunity there is.”

The study finds that 31 percent of enterprises deploying AI have brought at least one of their top three most-funded use cases into production, more than double the share that had done so in 2024. Organizations are going live with AI at higher rates in compliance, risk management and quality control. The focus for these AI use cases is to strengthen established processes, rather than target revenue growth and cost reduction.

Enterprises are gradually shifting their AI efforts from efficiency to high-value functions that support business growth, despite limited results so far in this area so far, ISG says. Customer relationship management automation, sales enablement, forecasting and lead capture have become leading use cases in 2025.

The rise of autonomous AI agents is also reshaping how enterprises think about the cost of AI. As traditional pricing models leave clients struggling to connect price with value, the report proposes a new framework that prices AI services by the level of autonomy, so charges reflect how work is done, not just what is delivered.

“By classifying services according to their intelligence and independence, this autonomy level pricing framework delivers clarity and fairness to the market,” Hall said. “ISG expects this model to define how AI services are contracted so businesses can benefit from increasing automation as AI technology continues to progress.”

Successful AI deployment still depends on core elements that enterprises must get right before bringing pilots to production, the research finds. To achieve business value, enterprises need to coordinate the platforms that power model development, the software that embeds AI and the services that connect them. What matters more than the presence of any one layer is how effectively they work together, the report says.

“AI is still in its early innings,” Hall said. “The core technologies enterprises are scaling today are less than five years old, and agentic AI has been in the market for just 15 months.

“Few technologies have gone from early commercial availability to full production, delivering measurable value as fast as AI,” he said. “Organizations have embraced rapid experimentation and have been rewarded for their efforts."

Additional information on the ISG State of Applied Generative AI Market report is available on the ISG website.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

New ISG research says the number of enterprise AI use cases in production has doubled since 2024, though only one in four initiatives is meeting expectations for revenue impact, and many have so far failed to produce broad cost savings.

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