Nearly 73% of investors say companies must expand artificial intelligence (AI) adoption to achieve measurable results, according to the PwC 2024 Global Investor Survey. The findings reveal a strong consensus on AI’s potential to drive productivity, revenue, and profitability, with two-thirds expecting significant gains within the next year.
The survey, conducted in September 2024, gathered insights from 345 investors and analysts across 24 countries and territories. PwC also conducted in-depth interviews with 14 investment professionals to gain deeper perspectives. The respondents were primarily institutional investors, including portfolio managers, analysts, and chief investment officers.
AI adoption seen as a catalyst for growth
Sixty-six per cent of investors predict that generative AI (GenAI) will increase productivity at the companies they invest in or cover by at least 5% over the next 12 months. Similarly, 63% foresee revenue growth, and 62% anticipate profitability improvements of the same magnitude during the same period. These expectations position AI as a pivotal force in shaping business outcomes for the coming year.
Among those surveyed, 42% advocate for moderate increases in AI investment, while 31% support significant spending to expand AI adoption. Capital expenditure on AI is widely viewed as an opportunity, with respondents more than twice as likely to see it positively than as a challenge.
Investors are not seeing a trade-off between AI adoption and workforce impact. Seventy-four per cent of respondents urge the companies they invest in or cover to prioritise upskilling their workforce alongside scaling AI technologies. Additionally, 32% of investors predict that AI will lead to headcount increases of 5% or more, which is on par with the 31% who expect little to no change in workforce size. These findings suggest a balanced view of AI as a tool that can enhance productivity while maintaining or even expanding employment levels.
“Investors expect to see real outcomes from GenAI over the next year and recognise that achieving this will take investment in people and upskilling, as well as technology,” said PwC US global assurance leader Wes Bricker. “Management can expect scrutiny on how they deliver AI productivity gains and support for an approach that extends beyond the tech itself to reinvent the way businesses operate.”
The role of AI in supporting investment decisions is becoming increasingly evident. Sixty-two per cent of respondents report that AI has moderately or significantly improved their ability to analyse qualitative and quantitative data published by companies. Investors are placing greater reliance on qualitative insights, such as corporate governance and innovation metrics, to inform their strategies, highlighting AI’s value in processing and interpreting complex datasets.
However, some investors caution that AI’s current applications are still largely limited to automating straightforward, well-defined processes. Broader implementation aimed at addressing more complex challenges is expected to develop as the technology matures.
While AI dominates investor priorities, cybersecurity remains a critical consideration. Thirty-six per cent of respondents believe the companies they invest in are highly or extremely exposed to cyber risks over the next year. This proportion has remained consistent in recent years, reflecting ongoing vulnerabilities as digital transformations accelerate.
Cybersecurity ranks alongside corporate governance, innovation, and management competence as one of the top non-financial factors influencing investor decisions. As companies expand AI adoption, investors are mindful of the need to address potential risks that could accompany such transformations.
PwC’s findings highlight the growing emphasis on AI as a driver of business growth while maintaining focus on mitigating associated risks. For companies, the challenge lies in scaling AI technologies effectively while implementing robust cybersecurity measures. Meeting these dual expectations will be crucial to building investor confidence and driving sustainable growth in 2024 and beyond.
Read more: Organisations accelerate AI adoption to transform risk management, says KPMG report
