Kaufman Rossin Report Finds 94% of Mid-Market Firms Use Generative AI but Few Scale Successfully

May 19, 2026
A new Kaufman Rossin report shows that while nearly all mid-market companies use generative AI, only 2% have scaled it across their organizations. The study identifies key barriers including talent shortages, cybersecurity concerns, and legacy system integration challenges.

Kaufman Rossin announced in a press release the release of its first annual report, *The State of Artificial Intelligence in the Mid-Market*. The research found that 94 percent of mid-market companies are using generative AI, yet only 2 percent have operationalized it at scale.

The report highlights that most organizations have moved beyond initial experimentation, with 83 percent conducting structured trials or embedding AI in core processes. However, fragmented adoption across departments has led to inconsistent results and limited enterprise-wide alignment.

Key barriers to scaling include a shortage of AI talent, cybersecurity risks, and challenges integrating AI with legacy systems. Most companies also struggle to measure financial return on AI investments, even though time savings are frequently reported as a primary benefit.

Despite these challenges, the majority of mid-market firms plan to increase AI spending. Kaufman Rossin introduced a four-stage AI Maturity Framework in the report to help executives evaluate their progress, from early experimentation to full operational integration supported by governance, data strategy, and organizational alignment.

We hope you enjoyed this article.

Consider subscribing to one of our newsletters like Enterprise AI Brief or Daily AI Brief.

Also, consider following us on social media:

Subscribe to Enterprise AI Brief

Weekly report on AI business applications, enterprise software releases, automation tools, and industry implementations.

Market report

AI’s Time-to-Market Quagmire: Why Enterprises Struggle to Scale AI Innovation

ModelOp

The 2025 AI Governance Benchmark Report by ModelOp provides insights from 100 senior AI and data leaders across various industries, highlighting the challenges enterprises face in scaling AI initiatives. The report emphasizes the importance of AI governance and automation in overcoming fragmented systems and inconsistent practices, showcasing how early adoption correlates with faster deployment and stronger ROI.

Read more