- The experimentation phase is over - AI is now tied to hard efficiency targets, with savings reaching into management levels
- One in four companies still doesn’t use AI in its product portfolio
“Digitalization & AI” ranks second among global management priorities this year, just behind cost optimization. The close connection between AI and cost efficiency is evident. These are key findings from a global study conducted by management consultancy Horváth, which surveyed over 600 board members and senior executives from large corporations.
AI Budgets See Significant Increases
In line with these priorities, companies have significantly increased their AI budgets. Manufacturing companies plan to invest 21% more in AI this year. Service providers, already further along in AI adoption, are increasing their budgets by another 9%. On average, AI investments now account for 0.5% of total revenue across all industries in 2025. Service companies are investing 0.2 percentage points more than manufacturers. “That half a percent is substantial, considering these are technology investments made in addition to regular IT budgets,” says Matthias Emler, Partner at Horváth and Head of AI, BI & Data.
The Hype Is Over - AI Is Now About Measurable Efficiency
“In the past two years, companies were still exploring AI’s potential and testing early use cases. Now, the focus has shifted to redesigning processes with AI to achieve substantial efficiency gains,” Emler explains. The greatest efficiency gains are expected in IT and digitalization, where companies anticipate a 16% improvement - potentially making one in six roles obsolete. Sales & marketing follows with a projected 14% gain. Finance & controlling (13%), HR (12%), and R&D (11%) are also expected to see double-digit improvements. No business function is projected to deliver less than 10% in efficiency gains.
AI-Driven Workforce Reductions Reach Management Levels
Leadership roles are no longer exempt from automation. According to respondents, AI is increasingly supporting - or even replacing - management tasks. This translates into a 10-12% savings potential at the leadership level. “Until now, executives were largely untouched by digital efficiency gains. AI changes that. Leadership roles and responsibilities will evolve, and leaders would be wise to actively shape this transformation,” says Emler.
One in Four Companies Still Doesn’t Use AI in Its Portfolio
When asked about AI maturity across business areas, the study shows that internal processes, such as administration and operations, are currently the most advanced. Around 25% of companies have already implemented AI solutions in these areas, with another 20% close to doing so. However, 16% are still at the very beginning. Customer service and communication follow in the AI adoption ranking. Here, 25% of companies already use mature AI solutions, while 20% have yet to take any action. The weakest area is products and services: one in four companies has not yet begun using AI in their portfolio. “That should be a wake-up call. Data-driven business models will be critical for future competitiveness, and AI must serve as a catalyst,” Emler emphasizes.
Performance Management: A Blind Spot for AI
Another major gap is AI in performance management. A full 40% of companies haven’t even considered using AI to manage profitability and productivity. Fewer than 10% have implemented solutions, while the rest are still in early planning stages.
AI Transformation Requires Structural Integration
Despite rapid technological progress, companies must ensure that transformation is structurally and organizationally supported. “If AI is implemented purely as a technical or cost-saving measure - without engaging the organization and its people from the start -transformation efforts are likely to fail. People will remain essential to success,” says Emler.
Beyond Efficiency: Growth Requires More Than Cost-Cutting
The study also shows that many companies understand that sustainable transformation and renewed growth require more than just cost optimization. Strategic workforce topics - such as talent retention, skills development, and leadership - along with organizational restructuring, rank among the top five management priorities this year.
About the Study
The study surveyed over 600 board members and senior executives from large companies across industries worldwide, with a majority based in the DACH region. Most participating companies generate annual revenues of at least €100 million. Interviews were conducted in Q2 2025, with analysis completed in June.