AI adoption

The AI sector’s valuation is debated, with some fearing a bubble. Magnus Grimeland of Antler argues against this, citing rapid adoption across industries unlike the slower cloud transition. He emphasizes real revenues, exemplified by OpenAI’s $1 billion ARR in 2023. Antler’s portfolio includes AI success stories, like Lovable surpassing $100 million ARR in eight months. Grimeland highlights the market entry of DeepSeek, suggesting smaller AI firms can challenge incumbents with strong teams and business models. Changing consumer behavior, impacted Google search, further fuels AI’s rise.

Clarivate’s “Pulse of the Library 2025” report, based on a survey of over 2,000 librarians globally, analyzes how libraries are adapting to AI, open science, and geopolitical shifts. AI adoption is rising, with 67% exploring or implementing AI. The report highlights AI literacy’s importance for successful AI implementation. Regional disparities exist in AI adoption, and budget constraints remain a significant challenge. The report provides insights for libraries to navigate the evolving information landscape and leverage AI effectively.

OpenAI’s offering of UK data residency addresses a major barrier to enterprise AI adoption in regulated sectors. This move allows UK organizations to keep data within the UK, aiding compliance and AI governance. The UK Ministry of Justice is an early adopter, using ChatGPT Enterprise for civil servants. This initiative highlights the growing importance of data sovereignty and shifts the focus from AI feasibility to effective integration and management, potentially accelerating AI adoption across industries. Businesses must now re-evaluate their AI platform choices, considering cost, integration, and regulatory compliance.

China’s generative AI user base has doubled to 515 million within six months, reaching a 36.5% adoption rate, according to CNNIC. This growth, driven by state support and domestic innovation, signals a potential shift towards a parallel AI ecosystem. Young, educated professionals dominate the user demographic, with a strong preference for domestic AI models like those from DeepSeek and Alibaba Cloud. China leads in AI patent filings globally, fueled by the “AI Plus” initiative, shaping a distinct technological influence.

OpenAI has expanded its ChatGPT Go subscription plan, offering a more affordable option, to 16 additional Asian countries, bringing the total to 18. This rollout, following successful launches in India and Indonesia, aims to democratize access to advanced AI technologies like GPT-5 in emerging markets. ChatGPT Go provides enhanced features and higher usage limits compared to the free version, with localized pricing strategies to cater to diverse economic landscapes. This move signifies OpenAI’s focus on accelerating global AI adoption and gaining a competitive edge in the Asian market.

A Red Hat report highlights a gap in the UK: 89% of organizations struggle to realize AI value despite projected spending increases. AI and security are top IT priorities, alongside cloud adoption, yet high costs, data privacy, and legacy system integration pose obstacles. “Shadow AI” is prevalent, underscoring governance issues. Open source is critical for AI strategies, particularly agentic AI adoption. Skills shortages persist, especially in agentic AI. While 83% see the UK as a potential AI leader, talent, funding, and private sector engagement are limiting factors.

Willis (WTW) reports a shift toward stability and buyer opportunity in the commercial insurance market (Oct 3, 2025). Driven by industry surplus capital exceeding $1 trillion and reinsurance capacity over $725 billion, property renewals fell 5.5% (Q1) and 8% (Q2). Workers’ Compensation benefits from a $16 billion reserve surplus. AI adoption is accelerating underwriting. However, annual insured catastrophe losses > $100 billion and systemic risks like cyber or climate events could reverse these gains.

Google’s Kent Walker urged the EU to adopt a more strategic regulatory approach to AI to effectively compete globally, especially with China. He cited China’s high AI adoption rates compared to the EU’s lower rates, attributing this to significant government investment and less burdensome regulations. Walker proposed a three-pronged strategy: smart policy focused on real-world AI effects, workforce development for AI skills, and scaling up beyond basic applications to embrace scientific breakthroughs. He emphasized removing regulatory hurdles, fostering research, and broadly implementing AI to stimulate EU growth.

A BCG study reveals a widening AI adoption gap: only 5% of companies significantly benefit financially, while 60% see marginal gains. These leaders, termed “future-built,” experience higher revenue growth and EBIT margins. They reinvest AI gains, prioritizing core business function reinvention and agentic AI adoption. Success hinges on executive-led strategy, business-IT collaboration, and workforce upskilling. Laggards face a “vicious cycle” due to leadership gaps and lack of focus, emphasizing the need for organizational change to avoid falling behind.

Netskope reports near-universal (95%) generative AI adoption in retail, up sharply from 73% last year, driven by competitive pressures. While usage of company-approved AI tools rises (from 21% to 52%), security risks escalate, with source code (47%) and regulated data (39%) commonly exposed. Companies are banning risky apps like ZeroGPT, and increasingly using enterprise platforms like OpenAI via Azure and Amazon Bedrock (16% each). Concerns extend to API connections (63%) and broader cloud security vulnerabilities, including malware via OneDrive and GitHub. Strict data protection and visibility are crucial.