KPMG: Companies in Central Asia, Caucasus twice as fast as global businesses in AI adoption

Companies across Central Asia and the Caucasus (CAC) are significantly outpacing global peers in implementing AI into operational workflows, Report informs, citing international audit and consulting network KPMG.

More than half of large enterprises in the region have already deployed AI solutions at an industrial scale, securing tangible economic returns, according to the report.

The study - which surveyed 2,500 IT executives across 27 countries, including a representative sample from Kazakhstan, Uzbekistan, Azerbaijan, Georgia, and Kyrgyzstan - revealed that 53% of CAC organizations have transitioned AI tools into full industrial operation with proven return on investment (ROI). By comparison, the global average stands at just 24%.

KPMG experts noted that businesses in Central Asia and the Caucasus have abandoned the wait-and-see strategy. Only 33% of regional companies follow an observational approach, compared to 44% globally, while 43% of CAC respondents prefer rapid, selective adaptation of new technologies.

"By the proportion of companies that have integrated AI into production processes with measurable results, the region is noticeably ahead of the global picture," said Konstantin Aushev, Partner and Head of Technology Consulting at KPMG in the Caucasus and Central Asia. "However, speed alone no longer guarantees an advantage. The key factor is turning local achievements into a sustainable organizational competency with clear responsibility distribution and a mature governance system."

More than 73% of CAC organizations actively experiment with emerging technologies, compared to 21% in the global sample.

Financial investments reflect deep digital involvement. About 73% of large CAC companies annually allocate between $100 million and $500 million to IT and digital technologies. Unlike developed Western markets - where up to 50% of IT budgets are spent on maintaining existing systems - CAC companies direct 41% of spending to software development, 31% to business transformation, and roughly 21% to infrastructure support.

Priority areas with budget growth exceeding 10% annually include cybersecurity (63% of CAC companies increasing spend vs. 41% globally), data and analytics (82% vs. 73%), AI and automation including GenAI and Agentic AI (81% vs. 76%), and digital twins and advanced modeling (87% vs. 72%).

IT staffing models are undergoing a structural shift toward hybrid workforce arrangements. By 2028, CAC companies plan to increase the share of "digital workers" - including AI agents, RPA, and software bots - from 30% to 40% of total IT capacity, while reducing external contractors from 21% to 14%.

Despite leading adoption dynamics, KPMG analysts warned of a emerging strategic risk termed "scaling fragility." Rapid pilot project launches are not yet backed by a comprehensive institutional framework.

The evaluation of AI governance maturity highlights a gap between operational performance and systemic regulation. On one hand, CAC companies excel at extracting commercial value: only 21% of regional organizations struggle to prove AI ROI to shareholders, compared to 55% globally and 32% among global tech leaders.

On the other hand, institutional adoption remains low. Only 34% of local companies have an approved corporate AI strategy, compared to 76% globally and 89% among tech leaders. Similarly, only 25% of CAC organizations have established a cross-functional AI Governance structure, compared to 69% globally and 74% among industry leaders.

Approximately 66% of regional organizations still lack a formalized AI strategy.

Furthermore, 50% of CAC companies acknowledge that AI initiatives stall when moving from isolated pilot projects to enterprise-wide scaling (35% globally; 15% among tech leaders). Key obstacles include accumulated technical debt, shortages in engineering skills such as MLOps and data architecture, and a lack of unified architectural standards.

High sensitivity to external geopolitical factors remains a key feature: 99% of CAC respondents cited geopolitics as a defining consideration when selecting open AI models and vendor technology, compared to 83% globally. This prompts companies to prioritize architectures that ensure technological sovereignty, data control, and local regulatory compliance.

KPMG analysts emphasized that 2026–2027 will be decisive for the CAC market, noting that "the current lead in AI adoption speed will only be maintained if businesses build rigorous data governance, implement AI Governance standards, and balance investments between innovative services and core IT infrastructure reliability."