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Enterprise AI adoption lags behind rapid software feature deployment

Recent industry data highlights a growing gap between the rapid deployment of artificial intelligence features by software providers and their actual adoption by customers. A survey of over 260 vertical market software (VMS) companies conducted by Banyan Software revealed that 51% of providers reported fewer than one in four customers are utilizing the AI capabilities they have built.

While software vendors are shipping code at an accelerated pace to meet demand, the lack of measurable business value suggests issues with customer readiness and alignment. Research from Emergence Capital indicates that AI-native SaaS companies grow approximately four times faster and retain 21% more customers than those that simply add AI as an external layer rather than integrating it into core workflows.

Gartner predicts that by the end of 2026, 40% of enterprise applications will feature task-specific AI agents. Experts suggest that meaningful retention and value come from weaving intelligence into existing workflows—such as automating manual tasks or providing proactive insights—rather than merely adding superficial features like chatbots.

Entities

Banyan Software · Emergence Capital · Gartner

Sources

about 1 month ago