AI is not as profitable as you might think, study finds
Most chief executive officers (CEOs) report that their companies haven’t seen a financial return from investments in artificial intelligence (AI).
Approximately one in three captains of industry (30%) claim that revenue has increased after investing in AI technology in the last 12 months. A quarter of CEOs (26%) report lower costs, but nearly as many experienced cost increases.
These are some of the findings in PwC’s 29th Global CEO Survey, which included 4,454 CEOs across 95 countries.
According to Mohamed Kande, Global Chairman at PwC, AI is becoming a core driver of competitive advantage because it can reshape productivity, customer experience, and decision-making.
“Companies that invest in data readiness, clear AI road maps, responsible guardrails, and a culture that enables adoption see better outcomes (…) Companies that lean into innovation see a higher share of sales from new offerings, faster revenue growth, and stronger margins,” Kande states.
According to PwC’s survey, only 12% of CEOs report both additional revenue and lower costs due to AI investments
However, Kande acknowledges there’s a gap emerging between leadership aspiration and execution. That’s most likely why 56% of CEOs say they haven’t profited at all from AI investments.
Furthermore, researchers found that AI adoption remains limited. Only a small portion of CEOs say they’re applying AI technology to a large or very large extent to areas such as demand generation (22%), support services (20%), the company’s products, services, and experiences (19%), direction setting (15%), or demand fulfilment (13%).
A separate PwC study found that 14% of workers reported using generative AI daily in their work.
AI development is still in its proverbial infancy, and more investments are required to truly profit from AI investments.
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“Isolated, tactical AI projects often don’t deliver measurable value. Tangible returns come from enterprise-scale deployment consistent with company business strategy,” PwC concludes.
“The survey findings are clear: value is shifting, industries are reshaping, and AI is accelerating the pace of change. The organizations that move with purpose, building the capabilities, systems, and partnerships they need, will be the ones shaping what comes next,” Kande adds.
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