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ServiceNow, the AI platform for business transformation, has released the latest edition of its Enterprise AI Maturity Index, developed in partnership with Oxford Economics. The report reveals that while artificial intelligence (AI) investment across Europe and the Middle East continues to climb, organisations are falling behind in execution — with the region’s average AI maturity score dropping by 10 points year-on-year.
The study evaluates enterprise readiness across five critical components: leadership and strategy, workflows, talent, governance, and investment. These indicators collectively assess how well-prepared organisations are to scale AI effectively.
Now in its second year, the global report surveyed nearly 4,500 respondents worldwide, including 1,950 from nine markets in Europe and the Middle East — including the UAE and Saudi Arabia. While emerging technologies such as agentic AI are driving experimentation and delivering early results, the region’s AI maturity score dropped from 44 to just 34 out of 100. This decline reflects growing challenges in turning innovation into structured, large-scale deployments.
“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 $144.6bn in 2028. The opportunity is huge, but only if we focus on getting the basics right today.”
AI growth is outpacing enterprise readiness
Nearly half (47 per cent) of companies in Europe and the Middle East reported launching more than 100 AI use cases in the past year. In the UAE, 49 per cent of organisations reported similar activity. However, most are still in early implementation phases. Just 6 per cent of organisations in the region have reached the most advanced AI stage — augmentation. In the UAE, 9 per cent have reached that milestone, and the country shares the highest AI maturity score (35) in the region with the UK.
Agentic AI is an emerging opportunity, with a knowledge gap
Agentic AI — which enables autonomous actions — is beginning to reshape automation strategies across the enterprise. Yet understanding remains low. Only 15 per cent of organisations in Europe and the Middle East are currently using agentic AI, and 42 per cent expect to implement it within the next year. However, just one in five organisations are “very familiar” with the technology, highlighting a knowledge gap.
Still, the potential is evident: among early adopters, 58 per cent saw improved gross margins, 59 per cent gained greater efficiency and productivity, and 60 per cent reported enhanced user experiences.
Read: UAE leads global shift towards chief AI officers, says IBM and Dubai Future Foundation study
Governance remains a weak link
As adoption increases, so do risks tied to privacy, cybersecurity, and regulation. In the UAE, organisations making “significant strides” in AI data governance rose modestly from 42 per cent in 2024 to 45 per cent in 2025. Yet data security continues to be the top concern blocking AI progress.
To address these issues, the report stresses that AI governance should be embedded from the outset. Platforms need to integrate oversight, accountability, and strategy — particularly when exploring advanced technologies like agentic AI.
