The middle market is embracing AI to drive innovation and efficiency

Artificial intelligence is rapidly transforming the business landscape, and the middle market is at the forefront of this revolution. The RSM Middle Market AI Survey 2025: U.S. and Canada provides a comprehensive overview of how AI is being adopted and integrated into business practices across the middle market. This report highlights key trends, challenges and opportunities that organizations are experiencing as they navigate the AI landscape.

The survey was conducted by RSM and Big Village from Feb. 21 through March 4 and garnered 966 responses. Survey respondents must have decision-making authority, be part of a decision-making group, or have significant influence on technology investments at their organization.

Embracing AI

The middle market is looking to AI to drive innovation and efficiency. Survey results show that generative AI adoption is nearly universal across the middle market, with organizations moving rapidly toward full integration of generative AI into their operations. However, companies still struggle with data quality and lack the in-house experience needed to tap into AI's full potential.

A focus on functions

The most popular use of AI was for text generation and summarization. Almost half (49%) of respondents using generative AI us it for this purpose. Workflow development came in second with 45% of them using AI for this task.

Half (50%) of those using generative AI said it has saved them time on information technology projects. AI also saved them time on applications such as data analytics (45%) and customer service (39%).

Challenges and opportunities

Though AI adoption is on the rise, organizations face several challenges in implementing and integrating it into their operations.

Over half (53%) of organizations that adopted and implemented generative AI believe they were only somewhat prepared to do so. In addition, a combined 10% believe they were either not very prepared (9%) or not at all prepared (1%).

Concerns about data quality, data privacy and security, and insufficient internal resources are among the top issues that organizations face. Despite these challenges, companies using generative AI are generally optimistic about its impact on their organization, with 88% of respondents saying it has affected their organization more positively than expected.

Compliance concerns

Whether they are local businesses or international firms, organizations want to remain in compliance with any regulations or laws that might affect their use of AI.

The most common way that organizations are staying updated on regulations is by following industry-specific publications or thought leaders for regulatory news. Forty percent of respondents using generative AI said they are taking this approach.

In addition, 36%  said they remain up to date by attending conferences, webinars or training programs focused on AI legislation. An equal percentage (36%) said they are establishing internal teams to review and share updates on AI regulatory developments.

The human element

Accountability for AI doesn't end at implementation; the technology requires continuous monitoring and validation throughout its lifecycle. Companies are taking various approaches to prepare employees for AI, including offering workshops and certifications, introducing AI literacy programs, and providing education on the safe, ethical and responsible use of AI.

Organizations recognize AI’s potential to improve their productivity and efficiency. The technology can free up employees from manual tasks, allowing them to focus on projects that require human ingenuity.

The takeaway

The RSM Middle Market AI Survey 2025: U.S. and Canada provides valuable insights into how AI is transforming the middle market. As organizations continue to embrace AI for innovation and efficiency, they must navigate challenges and opportunities to realize the full potential of this powerful technology.

Inside the report

The report addresses important questions into how middle market businesses are using AI, including the following:

• What are the key organizational areas in which AI is making an impact?
• How are companies measuring their return on investment for AI?
• What is the future of AI for the middle market?
   

Read RSM’s special report to learn more