PricewaterhouseCoopers (PwC), a global network of firms providing auditing, advisory and advisory services, reports that a relatively small group of organizations are reaping a disproportionate share of the financial returns from artificial intelligence.
In his research, Want to get a return on your investment from artificial intelligence? pursue growth, PwC analyzed feedback from 1,217 senior executives, primarily from public companies across 25 industries, to examine the results achieved by artificial intelligence and how the technology is being deployed.
PwC found that approximately 74% of the economic value generated by AI is concentrated in 20% of organizations.
PwC said this points to a growing gap between leading adopters and the majority of businesses still in the early or pilot stages.
PwC attributes this difference not to the number of AI tools used, but to the way organizations apply them. The company said those who achieve stronger financial results tend to use AI to support growth and organizational change, particularly by pursuing new revenue opportunities related to industry convergence while strengthening data capabilities, governance and trust.
The firm reports that the financial services industry performs above average in AI readiness, supported by relatively strong underlying capabilities.
However, PwC noted that it still lags behind leading organizations when it comes to scaling deployment and creating measurable impact. PwC believes the insurance industry is relatively well-positioned because of its clear direction and controls built around risk and security.
At the same time, PwC observed that the insurance industry has yet to match leading organizations in the breadth of AI adoption, particularly in terms of partnering beyond traditional industry boundaries and reshaping value chains. PwC also noted that improvements in areas such as energy use and waste reduction were less pronounced than reported by top-performing organizations.
Banks and capital markets show greater readiness than many other industries but still lag behind leading adopters in turning AI into tangible results, PwC said. PwC positions asset and wealth management in the middle, noting that while governance and foundational elements are in place, the industry has yet to fully leverage AI to support growth, particularly in terms of opportunities created by industry convergence.
PwC has discovered a consistent pattern across industries in achieving stronger financial performance through artificial intelligence. PwC said these companies are more likely to use artificial intelligence to reshape their business models and identify and exploit growth opportunities arising from convergence between industries, including through collaboration with external partners.
PwC’s analysis shows that the ability to seize such growth opportunities is the most important factor affecting AI-driven financial performance, surpassing the impact of efficiency gains alone.
PwC also reported clear differences in how AI is implemented in operations. Organizations that achieve stronger results are more likely to deploy AI in advanced ways, including systems that can perform multiple tasks within defined spans of control or operate with greater autonomy, PwC said. PwC found that these organizations are scaling automated decision-making faster than their peers.
The company attributes this to a focus on building trust at scale, supported by measures such as a responsible AI framework and a cross-functional governance structure. PwC noted that employees in these organizations are therefore more likely to trust the output generated by AI.
PwC concluded that without a change in approach, the gap between leading and lagging organizations is expected to widen further. The company said organizations that are already leading are better able to scale successful use cases, refine their capabilities and scale automation in a controlled manner, increasing their advantage over those still in the early stages of adoption.
Joe Atkinson, global chief artificial intelligence officer at PwC, said: “Many companies are busy rolling out AI pilots, but only a few are converting this activity into measurable financial returns. Leaders stand out because they point AI to
Growth, not just cost reduction, and supporting this ambition by making AI scalable and reliable. “
Arthur Wightman, PwC’s Bermuda Country Leader, commented: “AI is quickly becoming a decisive source of competitive advantage, but the rewards are not automatic. Leading organizations are those using AI to reinvent how value is created, while putting strong governance and trust at the heart of every deployment.”
