Generative AI (GenAI) continues to shape organisational strategies, with over half of CEOs citing workforce efficiency improvements and one-third reporting financial gains, suggests new research. According to PwC’s 28th Annual Global CEO Survey, based on responses from 4,701 CEOs in 109 countries, 56% of CEOs reported improved workforce efficiency in the past year thanks to GenAI, while 34% noted profitability increases and 32% observed revenue growth. Despite these tangible benefits, only 34% of CEOs achieved the profitability gains they had anticipated, down from the 46% who expected them in 2024.
“This year’s survey shows a more mature view of GenAI in the enterprise,” said PwC global and US commercial technology and innovation officer Matt Wood. “CEOs are convinced it has the power to unlock new opportunities – in fact, they are more optimistic than last year. At the same time, they are more aware of the challenges they need to navigate to realise that value. They see the importance of building trust into the way their AI systems are designed, and for now are prioritising integration into core business processes.”
Looking ahead, the report found that 49% of CEOs anticipate GenAI to boost profitability over the next 12 months. Key integration priorities include embedding AI into technology platforms (47%) and core business processes (41%), with 30% planning to use it for new product and service development.
However, fewer CEOs are addressing workforce readiness. Less than a third (31%) are integrating AI into skills and workforce strategies, which PwC highlights as critical to fully realising GenAI’s potential.
Trust in AI remains a key hurdle. Only 33% of CEOs expressed a high degree of trust in embedding GenAI into their organisations’ processes. Concerns around inaccurate outputs, biases, and intellectual property issues were cited as major obstacles. PwC has recommended adopting responsible AI practices to mitigate these risks and build stakeholder confidence.
Broader sentiment aligns with CEO challenges. In PwC’s Global Workforce Hopes and Fears Survey 2024, 62% of employees expected GenAI to increase efficiency. Additionally, PwC’s Global Investor Survey 2024 found two-thirds of investors anticipated productivity gains from AI in the companies they invest in, reflecting optimism across stakeholders.
The impact of GenAI varies across industries, with technology, life sciences, and private equity leading adoption and experiencing above-average returns. Workforce effects have been more positive than anticipated, with 17% of CEOs reporting headcount increases tied to AI adoption, compared to 13% reporting reductions.
Dynamic resource reallocation remains limited, with over two-thirds of organisations moving less than 20% of financial and human resources annually. This constraint impacts the pace of innovation and AI adoption. Over the past five years, just 7% of revenue was attributed to new AI-driven businesses. PwC’s data indicates that companies actively reallocating resources achieve higher profit margins, underscoring the link between agility and financial performance.
Other findings from PwC’s Annual Global CEO Survey
Beyond GenAI, the Annual Global CEO Survey found that 60% of CEOs anticipate global economic growth to improve in the coming year, up from 38% in the previous survey. Macroeconomic volatility (29%) and inflation (27%) emerged as the top global risks, while geopolitical conflict dominated concerns in the Middle East and Central and Eastern Europe.
Organisational reinvention remains a priority, with 63% of CEOs reporting significant actions to innovate products, target new customer groups, or explore new revenue streams over the past five years. However, only 7% of revenue in this period came from distinct new businesses, indicating slow progress.
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