Mindsprint, a purpose-built digital IT solutions provider, in partnership with global advisory firm HFS Research, has released a new report uncovering why many AI initiatives fail to scale despite massive investments. The Market Impact Report 2025, titled “Crack the AI Scaling Wall and Redefine Business Success via Services-as-Software,” draws insights from in-depth interviews with CIOs, CTOs, AI leaders, and senior executives across healthcare, retail, insurance, and industrial sectors in North America and Asia.
The research highlights a common challenge across industries: while AI adoption is accelerating, most enterprise AI projects stall before reaching scale. Key roadblocks include fragmented data, cultural resistance, and weak governance — factors that collectively undermine the journey from pilot projects to enterprise-wide deployment.
The Rise of Services-as-Software (SaS)
The report introduces an emerging operating model, Services-as-Software™ (SaS), as a potential breakthrough for enterprises looking to accelerate AI-driven transformation. SaS blends the scalability of software with the adaptability of services, codifying human-intensive processes into AI-powered platforms.
By shifting the focus from cost efficiency to speed, resilience, and measurable outcomes, SaS enables organizations to embed intelligence into the core of their operations and culture.
“The real opportunity for enterprises lies in harnessing AI’s computational power alongside human expertise through outcome-based service models,” said Nitesh Mirchandani, Chief Business Officer, Mindsprint. “The winners will be those embedding AI into the fabric of their operations and upskilling their people to work alongside it. When services are delivered through AI-led platforms, organizations can move beyond pilots to achieve measurable, scalable outcomes — driving resilience, growth, and long-term competitiveness in the AI era.”
Overcoming the AI Scaling Challenge
The report outlines a practical roadmap for enterprises to align governance, technology, and talent toward unlocking AI’s full potential. It urges leaders to move away from isolated experimentation and instead adopt outcome-driven partnerships that blend domain expertise with technology innovation.
“AI is no longer the innovation lab’s plaything. It’s becoming the enterprise’s new nervous system,” said Ashish Chaturvedi, Executive Research Leader at HFS Research and report author. “Yet most organizations remain trapped at the pilot stage, weighed down by technical debt, fragmented data, and timid governance. Services-as-Software acts as the release valve — codifying know-how into repeatable platforms and shifting the conversation from tools and talent to tangible business outcomes.”
Redefining Enterprise Transformation
By advocating for a unified framework of data governance, cultural readiness, and AI democratization, the Mindsprint–HFS report positions SaS as a bridge between experimentation and scale. The findings signal a pivotal shift — from viewing AI as a collection of discrete projects to integrating it as a core operational capability that drives agility, customer value, and sustainable competitiveness.
