Most CEOs See No Return on AI Investments, Survey Reveals

Many CEOs are skeptical about the return on investments in artificial intelligence (AI), according to a new survey by PwC. Over half of the surveyed leaders reported no noticeable increase in revenue or decrease in costs from their AI initiatives. This research draws insights from 4,454 business executives, highlighting concerns over the effectiveness of AI technology in driving tangible business value.

Key Findings from the AI Survey

• 56% of CEOs saw neither increased revenue nor decreased costs from AI investments.
• 12% reported both lower costs and higher revenue due to AI.
• 26% experienced reduced costs, while a similar number faced cost increases.
• Common AI use cases include:
  • Demand generation: 22%
  • Support services: 20%
  • Product development: 19%

AI Adoption Challenges

Despite interest, AI adoption remains limited, with only 14% of workers using generative AI daily, according to a prior PwC study. The report emphasizes that many AI projects are isolated and tactical, which often inhibits measurable outcomes. To realize significant benefits, enterprises must integrate AI into their overall business strategy.

PwC suggests that successful scaling of AI initiatives requires a robust foundation, including:

• A supportive technology environment for AI integration
• A clearly defined roadmap for AI projects
• Formalized risk management processes
• An organizational culture that fosters AI adoption

Broader Business Landscape

The survey indicates declining CEO confidence, with only 30% expressing optimism about revenue growth, down from 38% the previous year. Factors contributing to this decline include rising geopolitical risks and cybersecurity threats. Additionally, uncertainties surrounding AI benefits and challenges persist.

Concerns over tariffs are significant, with approximately one-third of CEOs predicting a negative impact on profit margins due to tariff policies. Notably, 22% of U.S. corporations report being highly exposed to these tariffs.

Conclusion

PwC warns that organizations hesitating to invest amid geopolitical uncertainty may suffer reduced growth and profit margins compared to their peers. As the AI landscape continues to evolve, it is crucial for businesses to adopt strategic approaches to ensure meaningful returns on their AI investments. For further insights on AI and business strategies, visit Filmogaz.com.