73% of Companies Increased Automation Spend in 2025, Nearly 40% Report at Least 25% Cost Reduction

Small Business | July 16, 2025

73% of Companies Increased Automation Spend in 2025, Nearly 40% Report at Least 25% Cost Reduction

But a majority of 61.3% admit their automation tools are underutilized due to fragmented strategies, siloed implementation and the need for a trusted orchestration partner.

Isaac M. O'Bannon

A new report by Redwood Software shows that 73.2% of businesses increased automation investments in the past year, but a majority of 61.3% admit their automation tools are underutilized due to fragmented strategies, siloed implementation and the need for a trusted orchestration partner.

The report, “Enterprise automation index 2025,” was commissioned by Redwood to examine the current state of enterprise automation and artificial intelligence (AI) readiness. Representing data collected by a panel via independent research firm Leger Opinion, the report uncovers key trends, investment patterns and emerging gaps in enterprise automation maturity. It was based on a survey of 285 automation practitioners across industries, including manufacturing, retail and finance.

The #1 overall business priority for 2025 based on responses? Reducing costs. Supporting that priority, 36.6% say automation has reduced costs by at least 25%, and 12.7% say it’s reduced costs by more than 50%.

“This research confirms what we see across industries: Automation is no longer a nice-to-have — it’s mission-critical,” said Kevin Greene, Redwood Software CEO. “But there’s a growing opportunity. Investment is up, results are proven, yet adoption is stalling. Organizations that overcome these barriers — through the right tools, education and strategic support – are the ones that will unlock the full value of automation and be ready for what’s next with AI.”

Key findings from the “Enterprise automation index 2025”:

  • 68.8% say automation is mission-critical or very important to business success
  • 36.6% of organizations report automation has reduced costs by at least 25%
  • 48.6% say automation has improved efficiency by 25% or more
  • Fewer than 6% of businesses have achieved end-to-end autonomous automation in any core process
  • 65.6% believe AI will significantly enhance automation but 40% feel unprepared to adopt it

The report also highlights outcomes unique to Redwood customers:

  • 1.3x as likely to fully utilize automation solutions
  • 1.6x as likely to see significant efficiency gains
  • 2x as likely to reduce manual workloads by more than 50%
  • More confident in their AI readiness

Download the report

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