AI maturity falls across EMEA despite rising investment, ServiceNow Index indicates

ServiceNow, the AI platform for business transformation, has released its latest Enterprise AI Maturity Index in partnership with Oxford Economics. The findings reveal a surprising trend in Europe and the Middle East: although AI investment continues to grow, the average AI maturity score across the region has dropped by 10 points year over year. As enterprises struggle to keep pace with rapid innovation, many are finding it difficult to translate AI ambition into scalable, effective execution.

The index examines five key components indicative of AI maturity level: leadership and strategy, workflows, talent, governance, and investment. Together, they provide a comprehensive view of how prepared organisations are to scale AI successfully.

Now in its second year, the global report draws on insights from almost 4,500 respondents globally, including 1,950 across nine markets in Europe and the Middle East. It shows that emerging technologies, such as agentic AI, are fuelling experimentation and delivering early returns across Europe and the Middle East. However, the pace of change is moving faster than organisations are able to scale AI in a structured, governed way. To this end, the region’s average AI maturity score has dropped 10 points year-on-year, from 44 to just 34 out of 100.

“Organisations across Europe and the Middle East are accelerating their AI projects, but many are still in the early stages of their journey,” said Cathy Mauzaize, President, EMEA at ServiceNow. “They recognise the potential, and now is the time to build on that energy. To keep moving forward, organisations are exploring how to lay the right foundations to make the data work for them and give their people the skills to use AI with confidence. According to IDC, European spending on artificial intelligence will reach $144.6 billion in 2028. The opportunity is huge, but only if we focus on getting the basics right today.”

The report outlines three major trends shaping the region’s AI journey and what’s needed to turn early success into lasting transformation.

AI is outpacing organisations’ capacity to harness it

There is a clear appetite for innovation, with nearly half (47%) of organisations in Europe and the Middle East launching more than 100 AI use cases in the past year. Still, most remain in the early stages of implementation, as reflected in this year’s overall European AI maturity score of just 34.

The majority of the region’s organisations are focused on experimentation and expansion, with only 6% reaching the augmentation stage, which is the most advanced stage identified in the survey.

Agentic AI presents a clear opportunity

Agentic AI, which is AI that can act autonomously, is poised to reshape enterprise automation. However, awareness varies widely across the region. While 15% of organisations in Europe and the Middle East are already using agentic AI and 42% plan to implement it within 12 months, familiarity is still in its early days.

Only one in five organisations is very family with agentic AI, revealing a significant knowledge gap.  The opportunity is clear, with over half of early adopters in Europe reporting improved gross margins (58%), greater efficiency and productivity (59%), and better experiences (60%).

Governance is the missing link

Rising adoption brings rising risk. AI at scale introduces serious challenges around cybersecurity, privacy, and regulatory compliance.

However, progress on governance has stalled in Europe and the Middle East. The number of organisations making significant strides in AI data governance has dropped from 45% to 42% year-on-year. Similarly, those succeeding in breaking down data and operational silos declined slightly from 43% to 42%. This points to a need for greater focus on managing AI risk effectively.

The pause in progress on AI governance indicates organisations must place greater emphasis on this, given that data security is cited as the number one barrier to realising AI value.

To scale AI safely and effectively, governance must be foundational, not an afterthought. This means embedding policy, oversight, and accountability into platforms from the outset and approaching new technologies, such as agentic AI, with a clear strategy in place.

Read the full report at https://www.servicenow.com/workflow/hyperautomation-low-code/enterprise-ai-maturity-index-2025.html to learn more.

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