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AI Governance Emerges as the Biggest Barrier to Enterprise Adoption, Study Finds
Organizations may be eager to embrace artificial intelligence, but many are still struggling with the operational realities of deploying it at scale. A new report from AvePoint and research firm Omdia suggests that governance, rather than technology, has become the primary obstacle.
The global study, "The Road to AI Readiness: Unlocking the MSP AI Opportunity Through Governance," surveyed managed service providers (MSPs) and found that 51 percent identified governance and compliance as the biggest barrier to customer AI adoption. Other challenges included data management (14 percent), demonstrating business value (14 percent), and skills shortages (13 percent).
"Governance has become the primary barrier preventing customer AI adoption," said Scott Sackett, senior vice president of global partner strategy at AvePoint, in a statement.
Sackett said MSPs increasingly need unified data protection platforms that standardize governance across multiple customer environments while automating compliance and operational processes.
"MSPs need unified data protection platforms that standardize governance across multi-tenant environments, transforming manual work into automated, repeatable services," he said. "Those who operationalize governance will capture a significant market opportunity."
The findings reflect a broader trend across enterprise AI. While organizations continue investing aggressively in AI initiatives, many are discovering that success depends less on deploying new models than on establishing the data governance, security, compliance, and operational foundations required to use them effectively.
The report found that 94 percent of MSPs are investing in automation to prepare for AI deployments, yet only 43 percent consider themselves highly mature in delivering AI-ready data environments. That gap highlights the difference between investing in AI and being operationally prepared to support it.
Researchers also found that limited visibility into customer data and identity environments, combined with the complexity of managing multiple tenants, continues to slow automation efforts. About 40 percent of respondents cited operational complexity as the biggest challenge in implementing automated data protection and compliance services.
The study also suggests MSPs are consolidating their technology stacks in favor of integrated platforms. Nearly half of respondents (49 percent) said they prefer fully integrated solutions, while 91 percent reported that combining backup and recovery capabilities improves governance.
Despite the operational challenges, demand for governance and compliance services continues to grow. Omdia projects the compliance services market will expand by 21 percent in 2026, driven by increasing regulatory requirements and customer demand.
"The message from this research is clear: one of the bottlenecks for end-customer AI adoption today is the operational burden of data governance and compliance, which has become more complex and essential as AI continues to spread," said Robin Ody, practice leader for MSP analysis at Omdia.
"This report shows there are still a lot of untapped opportunities in this section of the market. MSPs that adopt business solutions and vertical-specific approaches to governance and compliance are going to excel at capturing this demand," Ody said.