- Productivity, quality of work and decision making are greater returns on investment than profitability
- However, leaders are not confident measuring non-financial ROI
- Priority should be given to improving workers’ capabilities and redefining job specifications
New data from KPMG claims that some companies continue to invest in AI despite low returns on investment; However, it might be time to reframe expectations and focus on much more than the traditional financial return on investment.
The report outlines how organizations increasingly view it as a long-term strategic investment for transformation, rather than focusing solely on immediate, short-term value.
As a result, profitability has become less important as a priority, cited by 64% of KPMG sources, compared to non-financial metrics such as productivity gains (76%), work quality (71%) and better decision making (67%).
Article continues below.
AI is about total business transformation, not just profitability
The difficulty arises with actually measuring ROI: while profitability can be seen in the accounts, only 14% are confident in measuring indirect and strategic returns due to the challenges of quantifying benefits. Overall, KPMG summarizes that traditional ROI frameworks don’t actually map well to AI outcomes.
Despite this unclear ROI, around two in three (65%) companies will continue to invest regardless of measurable returns, and AI is now considered a “must-have” much like the cloud. Agent AI appears to be a top priority, with almost everyone (94%) using or planning to use AI agents.
As for what this means for the workforce, KPMG says AI requires not just technological change, but broader organizational change to accommodate workers in new types of roles. Around half are already redesigning AI-related roles (48%) and hiring dedicated AI specialists (52%), three in five are also upskilling their staff (61%).
Despite continued training efforts, for many the change is simply too great: 46% cite skills shortages as a major barrier. The usual culprits – privacy, security and governance – also remain obstacles for many.
“Whatever form of AI an organization is using or plans to use, it is critical to have the right barriers in place to minimize risks,” wrote AI Director Dr. Leanne Allen.
Allen praised companies for investing in their workers, but noted that roles are likely to change under the influence of AI. Looking ahead, business leaders should pay as much attention to supporting functions as workers do.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
