ServiceNow, the AI platform for business transformation, has released its latest Enterprise AI Maturity Index in partnership with Oxford Economics.

The report revealed a surprising trend across Europe and the Middle East. Despite growing AI investment, the region’s average AI maturity score dropped by 10 points year over year.

Enterprises are struggling to keep up with rapid innovation. Many are finding it difficult to turn AI ambitions into scalable, effective solutions.

The index evaluates five components: leadership and strategy, workflows, talent, governance, and investment. Together, these factors provide a full picture of an organisation’s readiness to scale AI.

Now in its second year, the global report includes insights from nearly 4,500 respondents worldwide. Of those, 1,950 were from nine EMEA markets, including the UAE and Saudi Arabia.

ServiceNow reported that agentic AI is driving experimentation in the region. However, the pace of innovation is outpacing organisations’ ability to implement AI in a structured, governed way. As a result, the region’s average AI maturity score fell from 44 to 34 out of 100.

Cathy Mauzaize, President, EMEA at ServiceNow, stated that although organisations are accelerating AI projects, most are still in the early stages. She emphasised the need for proper foundations, skills, and data strategies to succeed.

IDC forecasts that European spending on AI will reach $144.6 billion by 2028. The potential is significant, but execution remains key.

The report outlines three trends shaping AI progress in the region:

• Organisations are deploying more AI use cases. Nearly 47% in Europe and the Middle East reported launching over 100 use cases in the past year.
• Agentic AI adoption is growing. While only 15% currently use it, 42% plan to implement it in the next year.
• Governance remains a critical gap. Data security is the top barrier to AI value in the UAE.

ServiceNow highlighted that governance must be embedded from the beginning. Policies, oversight, and accountability should guide the deployment of technologies like agentic AI.

In the UAE, the AI maturity score is 35, the highest in the region alongside the UK. However, only 9% of organisations have reached the most advanced stage of AI maturity.

ServiceNow concluded that for AI to scale effectively and safely, strategic governance and skilled talent are essential.

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