PwC global chairman Mohamed Kande has delivered a stark warning about artificial intelligence investments. He says most companies are failing to see results from their AI spending because they skip essential groundwork.
AI Adoption Soars, But Returns Remain Elusive
Speaking with Fortune during the World Economic Forum in Davos, Switzerland, Kande shared troubling survey findings. The PwC study reveals that 56% of companies get absolutely nothing from their AI investments. This happens even as spending and adoption rates climb sharply across industries.
"Nobody is asking whether to use AI anymore," Kande explained. "Everybody's going for it." Yet the outcomes tell a different story. Only 10% to 12% of companies report actual revenue gains or cost savings from their AI initiatives.
The Real Problem Isn't Technology
Kande emphasizes that the technology itself works perfectly well. The real issue lies in weak execution. Companies that succeed with AI focus on three critical areas: clean data, clear processes, and proper oversight.
"Somehow AI moves so fast that people forgot the basics of technology adoption," Kande observed. He believes organizations rush into complex AI systems without establishing fundamental foundations first.
CEOs Face Unprecedented Challenges
The PwC chairman describes a dramatic shift in leadership demands. He says the CEO role has changed more in the past year than in the previous quarter-century.
"This is one of the most testing moments for leaders," Kande told Fortune. Modern executives must manage existing operations, transform current processes, and build new business models simultaneously. Kande calls this three-part responsibility something he hasn't witnessed before in his career.
Confidence Gap Emerges Among Business Leaders
PwC's 29th global CEO survey uncovers another concerning trend. While many leaders express optimism about the global economy, far fewer feel confident about growing their own businesses.
The survey, which gathered responses from 4,454 CEOs across 95 countries, shows only three in ten executives expect revenue growth over the next twelve months. This represents the lowest confidence level in five years.
Kande connects this uncertainty to AI's impact on traditional work structures. As artificial intelligence handles routine tasks, companies must reconsider talent development and career pathways. Traditional entry-level learning models may need complete redesign.
Looking Beyond Short-Term Disruptions
Despite the challenges, Kande maintains an optimistic outlook. He advises leaders to focus on long-term trends rather than temporary disruptions.
"Understanding change is key to dealing with it," he stated. The PwC chairman believes similar periods of uncertainty have occurred during previous economic and industrial transformations.
Kande's message is clear: companies must return to fundamentals if they want AI investments to pay off. Clean data, structured processes, and strong oversight form the essential groundwork that most organizations currently lack.
