Kyndryl Readiness Report: AI Delivers Early Returns, Pushing Enterprises to a Tipping Point
Rhea-AI Summary
Kyndryl (NYSE: KD) released its 2025 Readiness Report based on responses from 3,700 senior leaders across 21 countries, finding rising AI ROI but persistent readiness gaps. 54% report positive returns from AI (up 12 points vs 2024) while 62% remain at pilot stage. 90% say tools/processes can scale innovation, but >50% cite their tech stack as a barrier and only 29% say workforce is ready for AI.
Other findings: AI spending rose 33% year-over-year; cybersecurity is the top AI use case; 75% cite geopolitical cloud risks and 65% changed cloud strategy.
Positive
- 54% of organizations report positive AI ROI
- AI spending increased 33% year-over-year
- 68% investing heavily in at least one form of AI
- Pacesetters show 20-point lower cyber outage rate
Negative
- 62% of AI projects remain in pilot stage
- Only 29% of workforces feel ready for AI
- >50% report foundational tech stack blocks innovation
- 75% express geopolitical risks in global cloud use
News Market Reaction – KD
In the Oct 20 session, KD gained 1.20%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Businesses report AI momentum – but foundational gaps in tech and talent now define the next phase of progress
"A readiness gap exists as enterprises grapple with the promise of transformative value from AI," said Martin Schroeter, Chairman and CEO of Kyndryl. "While
Last year's report revealed a critical gap between perception and preparedness: while
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ROI on the rise, but AI stuck in experimentation phase: While
54% of organizations reported seeing positive returns on AI investments – an increase of 12 points from 2024 –62% still haven't advanced their AI projects beyond the pilot stage. -
Confidence continues to outweigh capability: While
90% say their tools and processes allow them to rapidly test and scale new ideas, more than half say their foundational technology stack holds back innovation. -
AI driving workforce transformation, but skills gaps remain:
87% say AI will "completely" transform jobs at their organizations within 12 months, even though many say their employees are not using AI frequently today and few have the technical skills necessary. -
Geopolitical pressures forcing a data pivot: While reporting clear benefits from cloud adoption, organizations are now reevaluating where and how their data is stored, processed, accessed and secured amid an increasingly fragmented regulatory landscape. Businesses are also balancing legacy infrastructure challenges, with
70% of CEOs saying they reached their cloud setup "by accident rather than design."
AI spending rises along with ROI expectations – with cyber resilience top of mind
Business leaders across all industries and countries say their company's AI spending jumped
Cloud is under pressure as geopolitical and regulatory disruption drive change
Many organizations are also revisiting their cloud infrastructure, prompted by new global regulations and growing concerns about data sovereignty. Three in four leaders report concerns about the geopolitical risks associated with storing and managing data in global cloud environments, and
Talent and Culture – the next readiness frontier
As leaders look to scale innovation, people readiness is emerging as a key barrier – and a key opportunity. While nearly 9 in 10 believe AI will completely reshape jobs in the next year, only
Compared to organizations who are lagging in these areas, Pacesetters are:
- 32 points less likely to cite their tech stack as a barrier
- 30 points more likely to say their cloud can adapt to new regulations
- 20 points less likely to report a cyber-related outage in the past year
To read the report, visit Kyndryl's Readiness Report.
Methodology
The 2025 Kyndryl Readiness Report combines survey data from 3,700 senior leaders and decision-makers across 21 countries with insights from Kyndryl Bridge, the company's AI-powered, open integration digital business platform. The Report uncovers the drivers, barriers and trade-offs that can make or break the ability of organizations to protect, sustain and accelerate their performance and future-proof their mission-critical processes.
About Kyndryl
Kyndryl (NYSE: KD) is a leading provider of mission-critical enterprise technology services, offering advisory, implementation and managed service capabilities to thousands of customers in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages and modernizes the complex information systems that the world depends on every day. For more information, visit www.kyndryl.com.
Kyndryl press contact
press@kyndryl.com
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SOURCE Kyndryl