Middle Market Companies Double Down on AI Investment as ROI Reaches 35%

A new surge in AI spending is reshaping how businesses operate, with 82% of middle market companies planning to increase their AI budgets over the next five years. This dramatic jump from just 58% in 2023 signals a fundamental shift in how businesses view artificial intelligence—from experimental technology to essential business tool.

The momentum is backed by solid financial returns. According to Citizens Bank's third annual AI Trends in Financial Management Survey, companies are now seeing an average 35% return on their AI investments, approaching the 41% threshold that CFOs consider a success benchmark.

Key Investment Trends Driving Growth

Private Equity Firms Take Notice: A staggering 97% of private equity firms now view strong AI strategy as an attractive trait in potential acquisitions, making AI capabilities a critical factor in company valuations.

Fraud Prevention Leads Usage: Nearly half (45%) of middle market companies already use AI for fraud detection, while 62% of private equity firms see this as a key short-term benefit spanning cybersecurity and transaction monitoring.

Autonomous AI Accelerates: Advanced "agentic AI" systems that operate independently are gaining rapid adoption, with 82% of middle market companies and 95% of PE firms currently using or planning implementation.

The Shift Toward Internal Development

Companies are increasingly building AI expertise in-house rather than relying on external partners. Middle market businesses reduced outside AI partnerships from 64% to 58% in just one year, while private equity firms made an even sharper pivot from 76% to 52%.

"Artificial intelligence isn't just a buzzword; it's a transformative technology that is delivering measurable results and shaping valuations," said Mark Lehmann, vice chair of Citizens Commercial Bank.

For business leaders, the message is clear: AI investment isn't just about efficiency anymore—it's about positioning your company for future growth and attractiveness to potential investors or buyers.

🔗 Read the full survey results on Citizens Bank