The October answer

Fifty-nine percent report AI deployed or embedded, but only 13 percent say removing it would change the cost structure or hiring plan. Production deployment is common; evidence of a changed operating model is not. The next step is to connect live systems to workflow, planning and control.

What changed since Edition 2

Edition 2 relied on proxy signals because the four-stage question did not yet exist. Edition 3 uses the direct maturity ladder from Enterprise AI at Microsoft and adds production-agent count and cost visibility. These measures distinguish deployment from broader operating change.

Where this research comes from

The maturity, agent and cost questions come from Enterprise AI at Microsoft. Funding, sign-off and blocker lines come from the common finance instrument. Security and marketing supply function-specific evidence. Respondents are deduplicated separately by email for each question.

The four stages

Exploring accounts for 21 percent, piloting 20, deployed 46 and embedded 13 (base 91). A system counts as embedded only when removing it would change the organization's cost structure or hiring plan.

Deployed and embedded in the October sample

The deployed share exceeds the embedded share by 33 points. This is a cross-sectional difference, not a conversion rate or a measure of movement over time. The definitions separate a live system from one that affects costs or hiring; the latter can involve workflow redesign, cost accounting, identity management, governance, reliability and workforce decisions.

Constraints associated with production

Four constraints recur in the data. Data access and quality is named by 39 percent, and integration by 28 percent. Only 44 percent have full cost visibility. In the security instrument, 68 percent name agent access as a problem while 34 percent report a dedicated security line.

October transformation evidence

Maturity measure: exploration through production

Chart showing enterprise AI maturity

AI maturity

AnswerCountShare
Exploring1921%
Piloting1820%
Deployed in production4246%
Embedded1213%

Base 91.

Fifty-nine percent are deployed or embedded, but only 13 percent meet the stricter embedded test. The 33-point difference between the deployed and embedded categories is descriptive; it should not be read as a transition or conversion rate.

Fleet measure: production-agent count

Chart showing production agent counts

Production-agent count

AnswerCountShare
None912%
1 to 52736%
6 to 201115%
More than 202229%
Not sure68%

Base 75.

Sixty of 75 respondents report at least one production agent, and 22 report more than twenty. At that scale, cost tracking, identity management and observability are basic operating requirements.

Control measure: cost visibility

Chart showing AI cost visibility

AI cost visibility

AnswerCountShare
Full real-time visibility3444%
Partial visibility3039%
No real-time visibility1317%

Base 77.

Heatmap showing maturity by cost visibility
GroupBaseFull visibilityPartial visibilityNo visibility
Exploring1822%33%44%
Piloting1436%43%21%
Deployed in production3361%33%6%
Embedded (removing it would change our cost structure or hiring plan)1050%50%0%

Matched respondents answering both questions; base 75. Small row bases are directional.

In the matched responses, 22 percent of explorers and 61 percent of deployed respondents report full visibility. None of the ten embedded respondents report having no visibility, though that row is too small for a firm conclusion. These cross-sectional differences do not show how any organization progressed from one stage to another.

Funding and production conditions

Chart showing AI funding sources

AI funding source

AnswerCountShare
Net-new money15941%
No clear AI budget12031%
Other software reallocation7720%
Would-be headcount money7319%

Base 389; any mention, so shares can sum above 100 percent.

Chart showing AI spending blockers

Spending blockers

AnswerCountShare
Proving ROI21154%
Integration with existing systems8923%
Security and compliance8021%
Data readiness7920%
Talent4512%

Base 389; any mention, so shares can sum above 100 percent.

Chart showing production bottlenecks

Production bottlenecks

AnswerCountShare
Data access and quality2939%
Compute2229%
Integration with existing systems2128%
Inference cost1925%
Governance and approval1621%
Agent identity and permissions1115%
Talent1115%

Base 75; any mention, so shares can sum above 100 percent.

Chart showing agent access methods

Agent access among applicable responses

AnswerCountShare
Per-agent credentials2449%
Shared service accounts1837%
Delegated user identity48%
Credential-free or brokered access36%

Base 49.

The finance instrument shows where AI funding comes from and what prevents additional spending. The AI Leaders instrument identifies production bottlenecks and agent access methods. The cohorts are reported separately; the results should not be read as respondent-level relationships across the two instruments.

Descriptive control and funding comparisons

Chart comparing agent adoption with cost visibility and agent-access concerns with dedicated funding
ComparisonFirst measureSecond measureDifference
Production agents and cost visibility80% report at least one production agent (base 75)44% report full real-time cost visibility (base 77)36 points
Agent-access concern and dedicated security funding68% name agent access as a problem (base 151)34% report a dedicated security line (base 151)34 points

The first row compares two questions from the same event but is not a matched-respondent measure. The second compares answers within the security instrument. Neither difference is a causal or longitudinal measure.

Tested against the record

McKinsey's 2026 State of AI reports broader enterprise scaling and identifies a small high-performer group. Open Future Forum uses a different measure: AI counts as embedded only when removing it would change costs or hiring. Under that definition, 13 percent of respondents are embedded.

What this means for the executive team

Treat “in production” as a deployment milestone, not proof of transformation. Executives should identify which budget, headcount, workflow, control or customer measure changed because the system exists. If none did, the organization does not meet this report's definition of embedded AI.

Questions this report answers

How much AI is embedded?

Thirteen percent by the report's strict operating-model definition (base 91).

How do the deployed and embedded shares compare?

The deployed share exceeds the embedded share by 33 percentage points (base 91). This is a cross-sectional difference.

Data, integration, incomplete cost visibility and limited dedicated funding for access control.

Key citable facts

Methodology and honesty notes

The direct maturity instrument is new and has no prior-period like-for-like comparison. The 13 percent figure is a baseline, not a trend. Cross-instrument relationships are descriptive and do not prove that the same respondents produced every line. Respondents are deduplicated per question by email; invited-only rows are excluded.

The 36-point production comparison uses two questions from the same event, with bases of 75 and 77. It does not track the same respondents one by one. The 34-point security comparison uses the share naming agent access as a problem and the share reporting a dedicated security line (base 151); it does not establish whether actual security spending is adequate.

Citation and editions

Suggested citation: Newlands, M. (2026). AI Transformation Report, Edition 3. Open Future Forum, October 2026. This edition supersedes Edition 2, September 2026.

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