
Decide Smarter.
Start Today
2024 and 2025 will be remembered as the years when AI crossed 90% PoC enterprise adoption and yet delivered far less than it promised. On the surface, every company now “uses AI,” every department has a copilot, and every boardroom has an AI roadmap. But if you look deeper, a very different picture emerges: record spending, record hype, and the lowest conversion from experimentation to impact in a decade.
The real story of AI in the enterprise is not about capability. It is about maturity versus motion. It is the difference between doing AI and transforming the business with AI.
According to McKinsey’s 2025 report, 88% of enterprises use AI in at least one function, up from 78% the previous year. On paper, this looks like mass adoption. The reality is more sobering:
Most organizations are stuck in what many executives privately call “PoC purgatory.” Demos are everywhere. Proof-of-concepts are abundant. But scalable, workflow-embedded AI remains rare.
The gap becomes even more noticeable when segmented by size. Nearly 47% of companies with more than 5 billion dollars in revenue have scaled AI, while only 29% of companies under 100 million dollars have done so. Large enterprises have the data, operational maturity, and budgets to push AI through the adoption curve. Most others are still trying to catch up.
The intense hype of the last two years created expectations of instant transformation. But transformation requires something most companies have overlooked. AI without business context is just automated guesswork.
Bain’s 2025 analysis points to the same conclusion. The biggest barrier to AI ROI is not model performance. It is the gap between insight and decision.
1. The Ontology Gap
AI Does Not Understand Your Business
LLMs can generate text, summaries, and responses, but they lack the definitions, constraints, and logic that govern how a business actually works. Without encoded business context:
This is why 80% of enterprises report no meaningful EBIT impact from their AI programs despite rising budgets.
2. Workflow Redesign Is Missing
McKinsey found that workflow redesign is the number one differentiator between AI leaders and laggards. High performers are three times more likely to rebuild processes end to end, instead of trying to inject AI into existing workflows. Laggards focus on tools. Leaders focus on transformation.
3. Leadership Ownership Is Uneven
High-performing companies have senior leaders who personally champion AI. Others delegate AI to innovation teams, isolating it from the business units where real change needs to happen. Without leadership ownership, AI remains a lab project instead of a capability.
On the supply side, AI vendors are proliferating faster than enterprises can absorb them. In the last year alone:
This is classic bubble behavior. But the bubble does not cover the entire ecosystem. It applies mostly to the number of vendors promising impact without proof.
For decision makers, this means two things: buyer fatigue is real and vendor differentiation is collapsing. Proof of value now matters more than capability.
Investment Surge: Bubble in Valuations, Reality in Demand
Funding surged to more than 100 billion dollars in 2024, with Q4 alone hitting a record 43.8 billion. Mega rounds accounted for 69% of all AI funding, driven by the race to build foundational models and agentic platforms.
This is a bubble in valuation, without question.
But the underlying demand is not speculative:
Valuations may correct, but enterprise AI is entering its industrialization phase.
We are now seeing a widening performance gap:
The Bubble
The Reality
The next era of AI will not reward companies that adopt the most tools. It will reward companies that build the deepest understanding of their own business and encode it into their AI systems.
The question for every leader in 2025 is no longer “What can AI do?”
It is “Does my AI understand my business well enough to help make decisions?”
Enterprises that answer “yes” will compound value for the next decade. The rest will continue experimenting while the gap becomes impossible to close.
Ranjan Kumar, Founder & CEO, DecisionX
Ranjan Kumar is the Founder and CEO of DecisionX AI, the world’s first self-learning, context-aware Decision Intelligence platform that enables enterprises to make smarter, faster business decisions through agentic AI. A serial entrepreneur and three-time founder with over 17 years of experience, Ranjan previously built Entropik, the world’s first Emotion AI platform with 17 global patent claims. An IIT Kharagpur alumnus, he is widely recognized as a thought leader in enterprise AI, Ontology Engineering, decision reasoning, and AI-driven business transformation.
