TEKsystems’ seventh annual State of Digital Transformation report reveals employee productivity now leads transformation priorities as organizations bet bigger on AI and manage rising complexity
TEKsystems, a global provider of business and technology services for more than 80% of the Fortune 500, today released their State of Digital Transformation 2026: Enhancing Digital Strategy report. Based on a global survey of technology and business decision-makers, the report reveals how organizations are adapting their digital transformation strategies amid rapid technology evolution, increased pressure to demonstrate ROI, and new operational complexities.
“Our State of Digital Transformation report signals a clear acceleration toward AI as organizations confront the realities of modernizing complex, legacy environments,” said Mark Collins, president at TEKsystems. “What stands out is how closely these findings reflect what our customers are navigating every day. As expectations rise and complexity grows, progress will depend on clear priorities, disciplined execution and the ability to move forward with confidence. This data offers a grounded view of what it takes to turn transformation intent into real, lasting change to help organizations succeed in today’s market.”
As organizations look to 2026, the data reflects a shift toward transformation strategies that prioritize internal enablement and long-term competitiveness. From generative AI (Gen AI) moving into day-to-day operations to complexity rising as the top barrier, the report outlines where companies are investing; what’s slowing progress; and how digital leaders are pulling ahead through stronger alignment across people, processes and technology.
Key insights from the State of Digital Transformation 2026 report include the following:
- Enhancing employee productivity (39%) now ranks ahead of improving customer experience (32%) as the top digital transformation priority.
- Only 27% of organizations expect digital transformation ROI within six months in 2026, down from 42% in 2025.
- Nearly half of organizations (49%) say Gen AI has the most potential to improve operations over the next 12 to 24 months, ahead of AI (39%), automation (34%) and big data (30%).
- The share of organizations investing $10 million-plus in transformation efforts increased to 27% in 2026, up from 22% in 2025.
- Complexity in current environments and siloed behaviors rose to 38% in 2026, up from 33% the prior year.
- Seventy-one percent of organizations plan to increase AI spending in 2026, including 76% of digital leaders and 61% of digital laggards.
“2026 will mark the transition from experimenting with AI to implementing it on a large scale,” said Ram Palaniappan, chief technology officer at TEKsystems Global Services. “Companies leading this shift will be those that act quickly and effectively while achieving tangible results. Proving AI’s return on investment will take center stage, and success will come to businesses that prioritize rethinking their processes, establishing solid governance, developing data strategies and preparing their workforce to work alongside AI. By taking a structured approach, these organizations will minimize complexity and scale practical applications, rather than simply deploying new technologies.”