Enterprises still face huge problems pushing AI projects from pilot to production, according to new research from Dell Technologies, with a confluence of factors hampering success.

Infrastructure deficits, regulatory friction, and fragmented modernization efforts are creating major barriers for enterprises, the study noted. Indeed, nearly two-thirds (64%) of EMEA IT leaders said their infrastructure isn’t ready for production-scale AI and analytics workloads.

More than half (55%), meanwhile, pointed to security and compliance-related issues as a leading factor behind stalled projects.

Notably, UK decision-makers are feeling the strain more than their European peers.

Around 84% said that running AI, workplace, and data center modernization in silos creates severe operational challenges, compared with 69% across EMEA as a whole.

Just over six-in-ten said they lack a clear, unified roadmap across AI, data, and security, compared with an EMEA average of 46%.

UK leaders are also more likely to require partners to demonstrate clear business impact and risk management before progressing new AI projects, at 77% versus 66%.

“Businesses are entering the next phase of AI adoption. The focus is shifting from exploring what’s possible to connecting the infrastructure, data, security and workplace technology needed to turn AI into real business value at scale,” said Steve Young, SVP and UK & Ireland managing director for Dell Technologies.

“Organizations that build these foundations today will be the ones that lead tomorrow.”

Uncertainty is hampering AI adoption

Across Europe as a whole, economic uncertainty continues to influence technology investment decisions, with eight-in-ten leaders admitting they are more selective about investment.

There’s a growing trend towards simplification and consolidation, with 81% saying they’d prefer to meet more of their technology needs through a single strategic partner.

IT leaders are also demanding more from their providers, with 77% shifting investment towards partners with greater scale, ecosystem, and supply chain capabilities.

Security, compliance ,and privacy have emerged as critical considerations, with 64% of leaders saying they’re concerned about complying with government regulations when using data for AI.

More than half (55%) also report that security and compliance concerns have already slowed or delayed AI adoption initiatives.

Legacy hardware pains

With infrastructure capabilities still lagging, IT leaders are now scrambling to bridge gaps and shortcomings, according to Dell.

Indeed, 86% of EMEA firms said they are making AI PCs central to their future strategy with AI. Overhauling legacy hardware is a significant challenge for many, however, and 79% noted that it has a direct impact on AI adoption.

“EMEA organizations are navigating a complex environment shaped by economic uncertainty, accelerating AI adoption, growing cyber threats, and evolving regulations,” said the firm.

“As organizations look to balance innovation with resilience and compliance, they are increasingly focusing on technology investments that deliver measurable business outcomes and support long-term competitiveness.”

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