# Rackspace study reveals growing gap in AI adoption among businesses

SAN ANTONIO - Only 13% of organizations are classified as "AI Leaders" who are achieving significantly better results from their artificial intelligence investments, according to a new report from Rackspace Technology (NASDAQ:RXT). The company, which has seen its stock surge over 23% in the past week according to InvestingPro data, maintains a Fair rating for overall financial health despite recent market volatility.

The study, "The AI Acceleration Gap: Why Some Enterprises are Surging Ahead," surveyed 1,400 IT decision-makers globally and found that organizations with integrated AI strategies are reporting substantially higher returns on their investments. For deeper insights into Rackspace’s financial performance and detailed analysis, InvestingPro subscribers can access comprehensive research reports that transform complex Wall Street data into actionable intelligence.

According to the report, 64% of AI Leaders report substantial benefits from their AI implementations, compared to just 32% of other respondents. These leading organizations are three times more likely to be scaling AI deployments and running AI agents in production.

The research shows average business investment in AI has increased nearly 250% from 2024 to 2025, rising from $2.5 million to $8.7 million. Additionally, 83% of respondents expect their organizations to increase AI investments over the next five years. Rackspace itself generates annual revenue of $2.71 billion, though InvestingPro analysis indicates the company faces profitability challenges, with analysts not expecting positive earnings this year.

"While most organizations are still debating AI adoption, a new class of leaders has moved beyond experimentation to embedding AI directly into business operations," said Srini Koushik, President of AI, Technology and Sustainability at Rackspace Technology.

Customer experience emerged as the primary focus area for AI applications, with 90% of respondents identifying it as a top use case alongside productivity improvements. Customer experience is also the most commonly tracked KPI for AI initiatives at 48%.

Despite growing adoption, 68% of respondents indicated that implementation and scalability of AI remain challenging. Additionally, 71% agreed that investing in infrastructure is crucial for enabling AI initiatives.

The report was based on a survey conducted by Coleman Parkes Research in March and April 2025 across multiple sectors including manufacturing, retail, healthcare, government, and financial services.

In other recent news, Rackspace Technology Inc. reported its Q1 2025 earnings, revealing a non-GAAP loss per share of $0.06, which was better than the projected loss of $0.0762. The company’s revenue reached $665 million, exceeding the forecast of $658.68 million, marking the 11th consecutive quarter of meeting or surpassing guidance. Despite a 4% year-over-year decline in total GAAP revenue, Rackspace achieved an 83% increase in non-GAAP operating profit to $26 million. RBC Capital Markets adjusted its outlook on Rackspace, reducing the price target from $3.00 to $2.00, while maintaining a Sector Perform rating. This decision aligns with the company’s transition towards a stable margin business amidst macroeconomic volatility. Meanwhile, Raymond James downgraded Rackspace’s stock rating from Outperform to Market Perform, citing a longer path to improved growth and free cash flow than expected. Rackspace’s strategic shift to larger contracts is part of its long-term growth plan, although analysts note this transition will take time. The company issued positive guidance for the second quarter, indicating ongoing progress in its operations.

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