Enterprises at a Crossroads as Kyndryl Highlights AI’s Promise and Pitfalls

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    Kyndryl’s 2025 Readiness Report shows that enterprises are witnessing real value from AI but face barriers in technology, talent, and regulation. Despite enthusiasm, many remain unprepared for large-scale transformation.

    Enterprises at a Crossroads as Kyndryl Highlights AI’s Promise and Pitfalls

    The global business landscape is witnessing a pivotal shift as artificial intelligence begins to yield measurable benefits. Yet, a new Kyndryl report finds that enthusiasm outpaces readiness. The 2025 Readiness Report, released by Kyndryl (NYSE: KD), surveys 3,700 senior leaders from 21 countries and exposes the dual reality facing modern enterprises: rising returns from AI alongside deep-seated gaps in infrastructure, workforce preparedness, and compliance.

    Martin Schroeter, Kyndryl’s Chairman and CEO, notes, “A readiness gap exists as enterprises grapple with the promise of transformative value from AI. While 90% of organisations think they have the tools and processes to scale innovation, more than half are stalled by their tech stack, and less than a third say their employees are truly ready for AI.”

    AI’s early payoff and experimentation plateau

    Kyndryl’s findings show a growing number of companies achieving positive AI ROI, 54% this year, up from 42% in 2024. However, a majority (62%) remain unable to move beyond pilot projects, suggesting that many are still learning how to operationalise AI at scale.

    AI spending is up 33% year-on-year, with nearly seven in ten leaders heavily investing in at least one AI form. Pressure to demonstrate value has intensified, with three in five leaders citing increased scrutiny over returns, particularly in cybersecurity applications.

    Cloud strategies under geopolitical pressure

    The report reveals shifting attitudes towards cloud storage. As new data regulations emerge globally, 75% of organisations express concern about geopolitical risks, prompting 65% to modify their cloud strategies. 

    Many are now pursuing data repatriation or private cloud models.
    Kyndryl also highlights that 70% of CEOs admit their cloud systems evolved “by accident rather than design,” signalling a need for strategic recalibration to strengthen resilience.

    People’s readiness: The next frontier

    AI’s influence on jobs is accelerating. According to the report, 87% of respondents believe AI will completely transform roles within a year, but only 29% feel their workforce is prepared. Cultural and organisational inertia remain barriers. 

    Nearly half of CEOs (48%) say their companies suppress innovation, and 45% cite slow decision-making. Kyndryl’s “Pacesetters” group demonstrates how leadership focus on culture and reskilling can yield tangible benefits: greater agility, fewer cyber incidents, and stronger adaptability to regulation.

    Bridging readiness with action

    Kyndryl’s analysis combines data from its Kyndryl Bridge platform with the survey findings to highlight strategies for advancing readiness. These include modernising legacy systems, developing regulatory resilience, and investing in upskilling. 

    As the world’s largest IT infrastructure services provider, Kyndryl continues to support over 60 countries in modernising their critical information systems to meet the evolving demands of AI-driven transformation.

    About Kyndryl

    Kyndryl (NYSE: KD) is a leading global provider of mission-critical information technology services, specialising in the design, construction, management, and modernisation of complex IT systems that power businesses worldwide. Operating in more than 60 countries, Kyndryl serves thousands of enterprise customers across industries including finance, healthcare, manufacturing, telecommunications, and government.

    The company offers advisory, implementation, and managed service capabilities through platforms such as Kyndryl Bridge, an AI-powered open integration solution that helps organisations optimise performance, enhance resilience, and accelerate digital transformation. As the world’s largest IT infrastructure services provider, Kyndryl plays a central role in enabling businesses to operate securely, efficiently, and sustainably in an increasingly digital economy.