A new report from A.Team and Riviera Partners, titled “2025 State of AI Innovation Report,” sheds light on the current state of AI deployment and the challenges faced by tech leaders. While 96% of senior product and engineering leaders plan to increase their AI investments in 2025, only 36% have successfully deployed AI to production, indicating a significant gap between ambition and execution.
The Role of Blended Teams in AI Innovation
One of the key findings from the survey of 250 senior leaders is the importance of “blended teams,” which combine specialized freelance talent with core full-time employees. Organizations adopting this model are twice as likely to reach advanced stages of AI innovation. Among those who have successfully deployed AI to production, 93% of leaders stated that building custom solutions has delivered more value than off-the-shelf tools.
Talent Shortages Stalling Progress
The report highlights a critical talent crisis that is impeding AI innovation. A staggering 94% of tech leaders cited talent constraints as their primary barrier, with 85% having to pause or extend critical AI initiatives due to a shortage of qualified professionals. Furthermore, 88% reported difficulties in hiring talent through traditional channels. However, companies that embraced blended teams have seen significant improvements, with 99% reporting increased innovation capability, 98% seeing improved project success rates, and 96% accelerating speed of delivery.
Addressing the Gap in AI Execution
According to Raphael Ouzan, Co-Founder and CEO of A.Team, the challenge for many organizations is not a lack of technology but a failure in execution. “The gap between AI ambition and achievement isn’t a technology problem—it’s an execution problem,” Ouzan explained. He pointed out that while many companies have access to AI models, the real struggle lies in integrating these models into enterprise workflows and scaling them across business units.
Key Investment Priorities
The research also sheds light on where organizations are focusing their investments. Rather than chasing the latest trends in large language models, tech leaders are prioritizing foundational capabilities such as AI safety and monitoring tools (50%), AI development platforms (49%), and AI model training and data infrastructure (41%). Notably, 46% of leaders are focusing on AI investments that drive revenue generation, signaling a shift toward leveraging AI for growth rather than solely for cost reduction.
A Reality Check on AI Timelines
While many leaders are optimistic about the potential return on investment (ROI) from custom AI development, with 32% expecting ROI in under six months, the reality is much slower. Only 7-14% of organizations have seen any form of ROI from their GenAI initiatives, depending on the area of focus. This gap between expectation and reality is attributed to the complexity of production-grade AI, which requires not just model development but also robust data infrastructure, monitoring systems, and deployment pipelines.
The “2025 State of AI Innovation Report” provides valuable insights into the current state of AI, emphasizing the importance of blended teams, the need for a strategic approach, and the challenge of overcoming talent shortages. As organizations continue to navigate the “trough of disillusionment” with AI, the report offers a roadmap for success, highlighting the importance of foundational investments and a holistic approach to AI development.
