Despite generative AI’s remarkable advances in recent years, adoption of the technology remains largely confined to the same large corporations that have historically led the way in deploying emerging technologies. But GenAI is evolving and so, too, is the company profile best suited to extract value from it. Increasingly, it is mid-sized companies that possess the right balance of resources and agility to accelerate adoption, drive meaningful outcomes, and reap the benefits of GenAI as the technology matures.

Large enterprises currently dominate GenAI adoption. A 2024 BCG survey found that 46% of large companies reported mid-to-high levels of GenAI maturity, compared to just 28% of mid-sized firms. With greater access to talent, data, and capital, larger players have had an edge in taking on traditional, resource-intensive AI initiatives.

But that advantage appears to be fading. Recent research from the London Business School (LBS), the Institute of Directors (IoD), and Evolution Ltd suggests that mid-sized companies—particularly ambitious, growth-focused firms such as those backed by private equity—are well placed to overcome adoption barriers. Mid-sized firms are more agile than large companies, a key attribute as GenAI has become more accessible, making these companies prime candidates to leverage the technology and unlock their potential.

On the whole, while such firms are still behind, they may be poised to rebound. Research by Oxford Economics found that only a quarter of mid-sized companies surveyed had adopted AI in 2023 but 51% were planning to adopt AI in 2024; the adopters were expecting it to improve their outlook, specifically in new products and services (43%) and marketing and sales (48%).