In Brazil, 921% of leaders expect AI to transform organizations within a year, and investments in AI increased by 401% in the last year.
Kyndryl (NYSE: KD), a global leader in mission-critical technology services, today released its second annual Kyndryl Readiness Report, based on responses from 3,700 leaders in 21 countries, including Brazil. The data reveals a moment of both advancement and reflection – while companies report increasing returns on AI investments, they also face pressure to modernize infrastructure, expand innovation efforts, reskill teams, and manage risks in an increasingly fragmented regulatory landscape.
“The promise of AI’s transformative value is evident,” says Spencer Gracias, Managing Director of Kyndryl Brazil. “In Brazil, 921% of leaders believe that AI will completely transform organizational functions in the next 12 months, and investments in AI have grown by an average of 401% in the last year. Despite this progress, 43% point to a lack of qualified professionals to manage AI, and 50% report that innovation is still frequently delayed by infrastructure challenges. Thus, while we see great progress in AI, gaps in technology and talent remain obstacles for the next phase of Brazilian companies.”
Last year's report in Brazil revealed a critical gap between perception and preparedness: while 951% of business leaders believed their IT infrastructure was top-notch, only 491% considered it ready for future risks. Despite the progress, this tension remains. This year:
- ROI is high, but AI is stuck in the experimentation phase.61% of Brazilian leaders feel more pressure to demonstrate a return on investment in AI than a year ago—50% say that innovation efforts generally stop after the proof-of-concept phase.
- Growth in AI investmentsDespite the challenges, average investment in AI in Brazil increased by 401% compared to last year, indicating that companies continue to bet on the technology even in the face of pressure for concrete results. Half say that their technology stack is hindering innovation efforts.
- AI is driving workforce transformation, but skills gaps persist.92% say that AI will "completely transform" jobs in their organizations within 12 months, although only 39% believe their employees possess the necessary technical skills.
- Geopolitical pressures are forcing a change in approach to data.With clear benefits from cloud adoption, organizations are reassessing where and how their data is stored, processed, accessed, and protected, in the face of a more fragmented regulatory landscape. Brazilian companies are also balancing legacy infrastructure challenges, with 77% of CEOs more concerned about geopolitical risks linked to data storage and management in the global cloud, and 48% reviewing data governance policies.
Investment in AI grows along with ROI expectations – cyber resilience in focus.
In Brazil, business investments in AI have grown by an average of 401% since last year. As these investments increase, so does the pressure to demonstrate and protect value. 61% of leaders say they feel more pressure this year to deliver ROI on AI projects. And what are the main actions to mitigate risks and protect themselves? Cybersecurity, with 49% investing in the implementation of robust measures in this area.
Cloud under pressure as regulatory and geopolitical changes drive adaptations.
Many organizations are also reviewing their cloud infrastructures, driven by new global regulations and growing concerns about data sovereignty. In Brazil, 77% of leaders report concern about geopolitical risks associated with storing and managing data in global cloud environments. In response, 62% of Brazilian companies have made changes to their cloud strategies, including reviewing data governance policies (48%), transferring data to internal infrastructure (34%), and migrating to local technology providers (29%). These actions reflect a clear move to ensure greater security, compliance, and control over corporate data.
Talent and culture – the next frontier of readiness.
In seeking to expand innovation, workforce preparedness emerges as both a barrier – and an opportunity. In Brazil, although 9 out of 10 believe that AI will completely reshape jobs in the next year, only 43% feel that their workforce is ready to successfully use the technology, and there are still concerns about the necessary skills. Globally, many organizations also face cultural barriers – with almost half of CEOs reporting that their companies inhibit innovation (48%) and are slow to advance decision-making (45%). Those who are moving faster – called “Pacesetters” in the report – not only invest in innovation but prioritize culture, empowerment, and leadership alignment.
Compared to organizations that lag behind in these areas, "Pacesetters" are:
- 32 percentage points less likely to see the technology stack as a barrier.
- 30 percentage points more likely to say their cloud can adapt to new regulations.
- 20 percentage points less likely to report a cybersecurity-related disruption in the past year.
To access the report, visit the Kyndryl's Readiness Report.
Methodology
The Kyndryl Readiness Report 2025 combines research data from 3,700 senior leaders and decision-makers in 21 countries with insights from Kyndryl Bridge, the company's open digital integration and artificial intelligence platform. The report reveals the factors, barriers, and trade-offs that can determine organizations' success in protecting, sustaining, and accelerating their performance and future-proofing their critical processes.
About Kyndryl
Kyndryl (NYSE: KD) is a leading mission-critical technology services company, offering consulting, implementation, and managed services to thousands of clients in more than 60 countries. As the world's largest IT infrastructure services provider, the company designs, builds, manages, and modernizes the complex information systems the world depends on every day. For more information, visit www.kyndryl.com
