ServiceNow, a leading artificial intelligence platform focused on business transformation, has unveiled the most recent edition of its Enterprise AI Maturity Index, created in collaboration with Oxford Economics. The findings indicate that while investments in AI are on the rise in Europe and the Middle East, organizations are struggling to implement these advancements effectively, as evidenced by an aggregate decline in the region’s AI maturity score, which has dropped by 10 points over the past year.
This comprehensive study analyzes organizational readiness through five key areas: leadership and strategy, workflows, talent, governance, and investment. These metrics together provide an insight into how prepared companies are to leverage AI at scale.
Now in its second iteration, the global report gathered insights from nearly 4,500 respondents worldwide, including 1,950 participants from nine markets across Europe and the Middle East, such as the UAE and Saudi Arabia. Despite some progress driven by emerging technologies like agentic AI, the region’s average AI maturity score has fallen from 44 to 34 out of 100, indicating a struggle to transform innovative ideas into widespread, structured implementations.
“While organizations in Europe and the Middle East are fast-tracking their AI initiatives, many are still in the early phases of development,” stated Cathy Mauzaize, President of EMEA at ServiceNow. “There is considerable potential here, and it is critical for organizations to capitalize on this momentum. They are looking to establish robust foundations for data utilization and equip their teams with the necessary skills to use AI confidently. According to IDC, AI expenditures in Europe are predicted to reach $144.6 billion by 2028, which presents a substantial opportunity, provided that core fundamentals are prioritized today.”
AI Adoption Is Outpacing Organizational Readiness
About 47% of businesses in Europe and the Middle East reported the initiation of over 100 AI use cases in the past year. In the UAE, a similar trend was observed, with 49% of companies indicating the same level of activity. However, the majority of these initiatives are still at the preliminary implementation stage. Merely 6% of organizations in the region have attained the most advanced stage of AI implementation—augmentation. In the UAE, this figure stands at 9%, and the country shares the highest AI maturity score of 35 in the region alongside the UK.
Agentic AI: A New Opportunity Amid a Knowledge Gap
Agentic AI, which facilitates autonomous operations, is beginning to influence automation strategies across various enterprises. Nonetheless, awareness remains low; only 15% of organizations in Europe and the Middle East currently utilize agentic AI, while 42% anticipate its implementation within the next year. A significant knowledge gap persists, with only one in five organizations describing themselves as “very familiar” with this technology.
Despite the lack of familiarity, the potential benefits are substantial: among early adopters, 58% experienced improved gross margins, 59% reported enhanced efficiency and productivity, and 60% noted better user experiences.
Challenges in Governance
As AI adoption accelerates, it also introduces risks related to privacy, cybersecurity, and compliance. In the UAE, the proportion of organizations making “considerable progress” in AI data governance increased slightly from 42% in 2024 to 45% in 2025. However, data security remains a predominant concern hindering AI advancement.
The report underscores the necessity of embedding AI governance from the very beginning. It advocates for the integration of oversight, accountability, and strategic planning—especially when delving into cutting-edge technologies like agentic AI.