As the business landscape approaches 2025, the potential of artificial intelligence (AI) is increasingly recognised as transformative, shaping the future of various sectors. A recent survey conducted by KPMG has revealed that a significant majority of business leaders, approximately 67%, anticipate that AI will fundamentally change their business models within the next two years. The findings were published in KPMG’s AI Quarterly Pulse Survey, which investigates how companies are translating their aspirations for AI into tangible outcomes.
KPMG, a prominent member of the Big Four professional services firms, famous for its extensive range of audit, assurance, tax, and consulting services, noted that amid challenging economic climates, increasing investor expectations, and a relentless push for operational efficiency, organisations are ramping up their commitment to generative AI (GenAI) initiatives. Many firms are now looking at advanced AI tools, specifically agentic AI, which have the capability to operate autonomously.
The survey indicates that while 51% of the respondents are considering the implementation of AI agents, only 12% have actually deployed them. The potential applications for agentic AI are considerable, encompassing tasks such as streamlining administrative functions, improving customer service, and generating new business content, which are each being explored by over half of those surveyed at rates of 60%, 54%, and 53%, respectively.
“Our latest pulse survey confirms what we’re seeing with clients: organizations are doubling down on AI investments,” noted Steve Chase, Vice Chair of AI & Digital Innovation at KPMG. He added that the data reflects a growing momentum around AI agents and highlighted the importance of demonstrating measurable return on investment (ROI) as organisations navigate this transition.
While business leaders express ambitious plans regarding GenAI, they also face substantial challenges. Data quality issues pose significant obstacles, as GenAI models depend heavily on the reliability of the data they are trained on. Concerns regarding poor data quality, including the prevalence of biases and inconsistencies, jeopardise the accuracy and reliability of AI outputs.
Employee adoption remains another significant challenge. The survey suggests that fostering integration between AI and human workers is essential for maximising the value generated from AI initiatives. Despite this need, the current rate of AI integration into existing workflows is low, with only a quarter of employees utilising AI tools.
Todd Lohr, Head of Ecosystems, U.S. Advisory, stated, "Enterprise technology providers will introduce agentic AI capabilities throughout 2025, enabling organizations to move from experimentation and piloting to broad-scale deployment and integration into existing workstreams." He emphasised the importance of effective oversight in enhancing trust and facilitating employee adoption, thereby creating opportunities for collaboration between humans and AI.
Interestingly, the survey points to a trend where organisations are opting to hire new talent rather than invest in upskilling their existing workforce. This approach towards the implementation of GenAI raises questions about governance, particularly as it appears to favour senior executives, potentially widening the gap in technology accessibility across different levels of the workforce.
Another critical area highlighted by the survey concerns the measurement of success and ROI from AI investments. With high expectations for ROI, organisations may lack reliable metrics to gauge success effectively. Steve Chase remarked that the dynamic nature of AI necessitates the evolution of measurement methods, which may include adopting new metrics aligned with overarching business strategies.
In a notable shift, productivity has emerged as the leading ROI metric for the first time since Q1 2024, with 79% of respondents identifying it as their top priority. Profitability has also seen a significant increase, rising from 35% to 73% over the same timeframe.
As the sector looks forward to 2025, it will be crucial for organizations to address the challenges of data quality, improve governance, and enhance employee skill sets to unlock the full potential of AI. Recognising the collaborative advantages of both human intelligence and AI capabilities will be vital in harnessing the transformative power of generative AI, ultimately driving sustained growth and innovation.
Source: Noah Wire Services