Only 20 Percent of Companies Capture Almost All the Profit from Artificial Intelligence

A small group of companies significantly stands out in the race to achieve real financial returns from the application of artificial intelligence, according to a new PwC study on the impact of artificial intelligence, AI Performance Study.

As part of a global survey, 1,217 senior executives, primarily from publicly listed large companies across 25 different sectors, were interviewed. Respondents discussed the revenues and efficiency gains they are currently achieving thanks to artificial intelligence and the ways in which they apply this technology in their business.

The research reveals that nearly three-quarters (74 percent) of the total economic value of artificial intelligence is captured by only one-fifth (20 percent) of organizations, indicating a pronounced and growing gap between a small group of leaders in the application of artificial intelligence and the majority of companies that are still in the pilot project implementation phase.

The results show that the most successful companies do not just use a greater number of artificial intelligence tools. Moreover, they apply artificial intelligence as a driver of growth and business transformation by creating new sources of revenue where the boundaries between traditional sectors are blurred, but with solid foundations in data management, responsible application, and trust.

Joe Atkinson, PwC’s Global Chief AI Officer, emphasizes that many companies are intensively launching AI-based pilot projects, but only a smaller portion of them manages to convert this activity into measurable financial results.

– Leaders stand out because they focus artificial intelligence on driving growth, not just on cost reduction, and they support this ambition by building solid foundations that enable AI-based solutions to be effectively implemented and utilized throughout the organization, says Atkinson.

Slaven Kartelo, a partner in the Audit and Accounting Advisory Department at PwC Croatia, responsible for AI-related services, states that their research sends a clear message that the real value of AI arises from its application as a driver of growth and business transformation.

– A small number of companies are rapidly distinguishing themselves by directing artificial intelligence towards creating new sources of revenue, making faster decisions, and developing new business models while simultaneously having strong foundations in governance, data, and trust. Companies that are currently leading in the application of artificial intelligence do not introduce technology in a fragmented manner but embed it into the very core of their business. It is precisely this combination of ambition, responsible governance, and scalability that distinguishes leaders in the application of artificial intelligence from those who remain in the testing phase. Without a clear strategic pivot, the gap between these two worlds will continue to deepen, adds Kartelo.

Growth, Not Just Productivity

Organizations that are most successful in applying artificial intelligence do not view this technology merely as a tool for increasing efficiency but as a driver of business transformation. They use artificial intelligence to reshape business models and expand beyond the traditional boundaries of their sectors.

Organizations that lead in the application of artificial intelligence are 2.6 times more likely than their competitors to state that AI facilitates the enhancement of their business model. Additionally, they are two to three times more likely to highlight that they use artificial intelligence to identify and exploit growth opportunities arising from the connection and overlap of industries, for example, through collaboration with partners outside their own sector.

PwC’s analysis shows that it is precisely the exploitation of growth opportunities arising from the connection of industries that is a key factor influencing the financial results achieved through the application of artificial intelligence, even more important than efficiency improvements.

Trust and Automation as the Foundation for Achieving Results

The research also indicates significant differences in how leaders apply artificial intelligence within their organizations. Companies that achieve the best financial results thanks to artificial intelligence are almost twice as likely to use AI in advanced ways, such as performing multiple tasks within clearly defined frameworks or autonomous work that continuously improves.

Moreover, leaders in the application of artificial intelligence increase the number of business decisions made without human intervention nearly three times faster than their competitors.

Organizations that lead in the application of artificial intelligence significantly more often have established mechanisms such as frameworks for the responsible application of AI and bodies that include multiple departments and jointly manage artificial intelligence.

As a result, their employees are twice as likely to express trust in the results generated by artificial intelligence.

A Growing Gap

If organizations do not change their approach, the performance gap between leaders and lagging organizations is likely to continue to deepen. Leaders will continue to learn faster, apply proven use cases across the organization more quickly, and automate decision-making in a safer manner, concludes PwC’s research.