AI trends in 2025: How leaders unlock efficiency in commercial banking

Submitted By Meg Lower, KeyBank on Thursday, 10/02/2025

By: Jeff Bardonaro, KeyBank Dayton Market President and Commercial Leader

Nearly 70% of middle market companies are investing in AI to boost productivity and enhance operations, according to recent survey data. Many leaders are taking a phased approach, starting with smaller technology investments to validate impact. They then reinvest based on proven returns, enabling companies to compete with larger rivals, address talent shortages, and build internal capabilities without stretching budgets.

KeyBank’s July 2025 Middle Market Sentiment Report clearly reveals what technology is getting funded, what leaders expect to gain from it, and what obstacles may get in the way. The analysis reflects input from 762 owners and executives at U.S. firms with $10 million–$1 billion in annual revenue.

Top priorities fueling AI strategy in 2025

1. AI investments driving more secure and predictive operations

Middle market leaders are making deliberate, results-oriented AI investments focused on solving real business challenges and driving value. Currently, 67% are directing AI dollars toward cybersecurity and fraud mitigation, while 56% are automating routine tasks and improving data analysis.

What it means for you

Now is the time to rethink how work gets done. AI isn’t just about automating tasks. It’s about building a business that scales securely, adapts quickly, and empowers teams to focus on growth.

Technology adoption doesn’t have to be complex. Start with what slows you down. Streamline workflows. Speed up decisions. Use data to anticipate what’s next. Better forecasting means faster response times, which matters in an economic environment where expectations continue to rise even when headcounts don’t.

“The best AI projects are relatively simple, start small, and scale fast: Secure the payments rails, streamline a repetitive workflow, prove the efficiency, then reinvest,” said Jeff Bardonaro, KeyBank Dayton Market President and Commercial Leader. “That rinse-and-repeat cycle is how middle market companies outpace larger rivals without outspending them.”

2. Productivity leads anticipated benefit of AI

Middle market leaders are realizing tangible benefits from AI and technology, with gains in productivity, forecasting, and data-driven decision-making. The most anticipated outcome is greater operational efficiency, followed closely by improved decisions and enhanced planning.

What it means for you

It’s a big decision to invest in AI, especially with questions around ROI and implementation. But the payoff is real. Reducing manual tasks frees up your team for strategic work. Easier access to data speeds up decisions. And accurate forecasting helps protect margins and drive growth.

Teams can reclaim time, reduce errors, and make more effective moves with technology that supports AI. Whether automating reports or improving planning, the benefits show up in your growth and your team’s ability to focus on profitability.

3. Data privacy and integration are top technical hurdles

Among firms with a strong business outlook, nearly half of executives cite data privacy and security concerns as their top AI challenge, followed by 38% who face integration issues and 35% who struggle with legacy system compliance.

For middle market companies with a fair or poor outlook, the challenges are even more pronounced. A lack of in-house AI expertise is reported by 74%, which is more than double the rate among confident firms (33%). While funding and change management are secondary concerns, they remain significant.

What it means for you

To get the most value from AI, start with a strong foundation. Embed privacy and security into your design from the outset and choose tools that integrate smoothly and meet compliance standards. A breach or misstep can stall progress before it starts.

Talent is also critical. Without the right skills, even the best AI strategy falters. Upskill internal teams or bring in external expertise to accelerate progress. Delaying AI adoption due to budget constraints or internal resistance puts you at risk of falling behind competitors who are already gaining efficiency and insight. Combine smart investment with strong change management to ensure adoption — so AI delivers impact, not shelfware.

Final thoughts

Leaders are moving beyond pilot programs to scalable solutions that deliver measurable impact. The trends show a clear shift: Companies are investing with purpose, aligning technology to business outcomes, and building resilience through efficient operations. As the pace of innovation accelerates, those who act now will be best positioned to lead.

KeyBank recognizes the challenges of today’s economic landscape and the concerns it creates for business leaders. Our middle market experts bring experience and vision from leaders who are leveraging AI, capital discipline, and cyber resilience to position their companies for growth and potential M&A activity. We deliver strategic insights, personalized financial solutions, and timely guidance to help you manage uncertainty, unlock growth potential, and translate your vision into measurable outcomes.

Interested in submitting an article? Email info@daytonrma.org for more information.