Middle Market Firms Rapidly Embracing Generative AI, But Expertise Gaps Pose Risks: RSM 2025 AI Survey

What the survey reveals

• Generative AI adoption has surged to 91% among middle market companies, up from 77% last year — a clear sign that AI is becoming standard in business operations.
• One in four organizations using generative AI report it is fully integrated into core operations and workflows, indicating that AI is moving beyond pilots into enterprise-wide deployment.
• 92% of companies using generative AI encountered challenges during rollout, with top issues including data quality, privacy/security concerns, and internal skill gaps — highlighting that adoption is far from seamless.
• Despite high adoption, 53% of firms feel only "somewhat prepared" to implement AI, with another 10% not prepared at all — underscoring a major readiness gap across the middle market.

CHICAGO, June 11, 2025 /PRNewswire/ -- The 2025 RSM Middle Market AI Survey reveals that artificial intelligence (AI) is increasingly becoming a cornerstone in the operational strategies of middle market organizations across the U.S. and Canada. The report, presented by RSM US LLP ("RSM") – the leading provider of assurance, tax and consulting services for the middle market – found an overwhelming 91% of respondents affirmed their organizations' use of generative AI in business practices, marking a notable rise from 77% in the previous year's survey.  

The survey findings reflect middle market companies' strategic commitment to generative AI implementation. Among those respondents whose organization uses any AI (91%), 79% reported having a defined strategy or roadmap to adopt it, with 37% claiming a well-formulated approach. Among respondents whose organization uses generative AI, one-quarter stated it is fully integrated into their core operations and workflows. The time-saving benefits of generative AI adoption are particularly evident as half of the respondents using it reported streamlining their IT projects, 45% cited time savings in data analytics applications, and 39% experienced efficiencies in customer service processes.

"The adoption rates we're seeing prove that AI is no longer a luxury, but a necessity for middle market firms to remain competitive," said Sergio de la Fe, enterprise digital leader and partner with RSM US LLP. "While 88% of those using generative AI said it has impacted their organization more positively than expected, 92% reported experiencing challenges during AI implementation rollouts, demonstrating how complex and multi-faceted the integration process is. We found that respondents cited hurdles around data quality, skills gaps, and governance that companies must proactively address through strategic planning and investments."

Unlocking Efficiency and Innovation Through AI

A driving force behind generative AI's widespread adoption is its ability to boost productivity and operational efficiency across the middle market. By automating routine tasks, generative AI enables employees to redirect their efforts toward higher-value work that demands human ingenuity and creativity.

Key findings from RSM's survey highlight how organizations are using generative AI:

• Text generation and summarization are the most common applications, used by 49%.
• Workflow development follows closely, adopted by 45%.
• Intelligent forecasting/demand planning and sales/marketing content creation are each used by 40%.

Organizations are actively integrating AI into a variety of operational areas to drive innovation and efficiency. Among those using generative AI:

• 58% have implemented it in data analytics, the most widespread use case.
• 57% use it in IT operations.
• 48% leverage AI for customer service.

Data Quality and Expertise Deficits Hinder Optimal Implementation

Despite strong enthusiasm for generative AI adoption across the middle market, the survey results also highlight significant challenges organizations face in optimizing these technologies.

Key challenges identified in the survey include:

• Preparedness gaps:
  • 53% said they felt only somewhat prepared to adopt and implement generative AI.
  • 10% reported being not very prepared (9%) or not at all prepared (1%).
• Top reasons for unpreparedness:
  • Lack of in-house expertise – cited by 39%.
  • Absence of a clear AI strategy – noted by 34%.
  • Data quality issues – reported by 32%.

Even among firms that considered themselves prepared, the AI implementation process was rarely without obstacles:

• 92% of respondents who use generative AI encountered challenges during rollout.
• Most common issues during implementation:
  • Data quality concerns – cited by 41%.
  • Data privacy and security – reported by 39%.
  • Insufficient internal skills and expertise – identified by 35%.

"While generative AI has opened up new frontiers of productivity across operations, it's crucial that businesses don't lose sight of the human element," emphasized Rhys Morgan, Consulting partner and North American CIO Services lead. "AI works best when complementing human ingenuity – companies must upskill their workforce and implement rigorous oversight and AI governance measures to fully capitalize on AI's potential while mitigating risks."

Despite these formidable challenges, 70% of middle market firms using generative AI recognized the need for external support to maximize the full potential of their AI solutions. This acknowledgment, coupled with a willingness to invest in AI consulting services, signals a commitment to overcoming hurdles through strategic partnerships. Notably, of the 76% who have a dedicated budget for generative AI investments, 47% use it for AI consulting services.

North American Perspectives: Contrasting U.S. and Canadian AI Journeys

While middle market firms across North America are embracing generative AI, RSM's report reveals notable differences in experiences and preparedness between Canadian and U.S. companies:

• Negative or unexpected consequences from AI implementation were reported by:
  • 37% of Canadian respondents.
  • Compared to 29% of U.S. respondents.
• Preparedness for AI adoption also varied:
  • 75% of Canadian firms said they were not fully prepared.
  • Compared to 61% of U.S. firms.

As the artificial intelligence revolution charges forward, these nuances underscore how geographic and geopolitical contexts can shape organizational attitudes and readiness. The AI journeys of U.S. and Canadian middle market companies seem to be charting distinct, though parallel, trajectories amid the challenges and opportunities presented by these transformative technologies.

Bridging the AI readiness gap

The survey's findings reflect a clear trend: while adoption is accelerating, many middle market companies are still navigating the complexities of AI strategy, integration and governance. In response to these evolving needs, RSM has committed $1 billion over the next three years to technology and AI innovation—including investments in digital infrastructure, advanced AI capabilities and talent development. These efforts aim to enhance RSM's ability to guide clients through AI transformation while accelerating its own use of responsible AI across service lines.

The full report can be found here.

Methodology
The survey, conducted by Big Village, included 966 respondents with 762 in the US and 204 in Canada. Qualification for survey participation required respondents to have decision-making authority, be part of a decision-making group, or have significant influence on technology investments at their organization. The survey was conducted online from February 21 through March 4, 2025. The margin of error for the total sample is +/- 3.2%.

About RSM US LLP
RSM empowers middle market companies worldwide to take charge of change. The clients we serve are the engine of global commerce and economic growth. Our unique middle market perspective makes RSM the natural choice for growth-oriented, internationally active organizations seeking relevant insights and tailored, innovative solutions for a complex and changing world. With a global reach spanning more than 120 countries, we instill confidence in a world of change by bringing the full power of RSM to make a lasting impact on our clients, colleagues and communities. For more information, visit rsmus.com, like us on Facebook, follow us on X and/or connect with us on LinkedIn.

SOURCE RSM US LLP