Enterprises struggle to keep pace with rapid innovation in AI
Despite continuing investment in Europe and the Middle East AI maturity across both regions has dropped year-on-year according to ServiceNow’s latest Enterprise AI Maturity Index in partnership with Oxford Economics.
The index examined five key components indicative of AI maturity level: leadership and strategy; workflows; talent; governance; and investment. Together, they provide a comprehensive view of how prepared organisations are to scale AI successfully.
Now in its second year, the global report draws on insights from almost 4,500 respondents, including 1,950 across nine markets in Europe and the Middle East. It shows that emerging technologies, such as agentic AI, are fueling experimentation and delivering early returns across Europe and the Middle East. However, the pace of change is moving faster than organisations are able to scale AI in a structured, governed way. To this end, the region’s average AI maturity score has dropped 10 points year-on-year, from 44 to just 34 out of 100.
“Organisations across Europe and the Middle East are accelerating their AI projects, but many are still in the early stages of their journey,” said Cathy Mauzaize, president, EMEA, ServiceNow. “They recognise the potential, and now is the time to build on that energy. To keep moving forward, organisations are exploring how to lay the right foundations to make the data work for them and give their people the skills to use AI with confidence.”
The report said that there is a clear appetite for innovation, with nearly half (47%) of organisations in Europe and the Middle East launching more than 100 AI use cases in the past year. Still, most remain in the early stages of implementation.
The majority of the region’s organisations were focused on experimentation and expansion, with only 6% reaching the augmentation stage, which is the most advanced stage identified in the survey.
Awareness of agentic AI varied widely across the region with 15% of organisations in Europe and the Middle East were already using it and 42% planning to do so within 12 months. Only one in five organisations reported being very familiar with agentic AI, revealing a significant knowledge gap. The opportunity is clear, with more than half of early adopters in Europe reporting improved gross margins (58%), greater efficiency and productivity (59%), and better experiences (60%).
Rising adoption brings rising risk. AI at scale introduces serious challenges around cybersecurity, privacy, and regulatory compliance. However, progress on governance has stalled in Europe and the Middle East.
The number of organisations making significant strides in AI data governance has dropped from 45% to 42% year-on-year. Similarly, those succeeding in breaking down data and operational silos declined slightly from 43% to 42%. This points to a need for greater focus on managing AI risk effectively.
The pause in progress on AI governance indicates organisations must place greater emphasis on this, given that data security is cited as the number one barrier to realising AI value.
To scale AI safely and effectively, governance must be foundational, not an afterthought. This means embedding policy, oversight, and accountability into platforms from the outset and approaching new technologies, such as agentic AI, with a clear strategy in place.
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