- Productivity, quality of work and decision-making are more important returns on investment than profitability
- However, managers are not sure about measuring the non-financial return on investment.
- Upskilling workers and redefining work specifications should be a priority
New data from KPMG indicates that some companies continue to invest in AI despite poor returns on investment. However, it may be time to reframe their expectations and focus on more than just traditional financial ROI.
The report shows how organizations are increasingly viewing this as a long-term strategic investment for transformation, rather than focusing only on immediate, short-term value.
As a result, profitability has become a priority, cited by 64% of KPMG sources, compared to non-financial indicators like productivity gains (76%), quality of work (71%) and better decision-making (67%).
Article continues below
AI is about complete business transformation, not just profitability
The difficulty comes from actually measuring the return on investment: even if profitability can be observed on the accounts, only 14% of respondents are confident in measuring indirect and strategic returns due to the difficulties linked to quantifying the benefits. Overall, KPMG summarizes that traditional ROI frameworks don’t really match AI results.
Despite this uncertain return on investment, around two in three companies (65%) are expected to continue investing regardless of measurable returns, with AI now considered a “must-have”, just like the cloud. Agentic AI appears to be one of the highest priorities, with almost all (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 rethinking roles around AI (48%) and hiring dedicated AI specialists (52%); three in five also upgrade the skills of their staff (61%).
Despite ongoing training efforts, for many the change is simply too much, with 46% citing lack of skills as a major barrier. The usual culprits – privacy, security and governance – also remain obstacles for many.
“Whatever form of AI an organization uses or plans to use, it is essential to put the appropriate safeguards in place to minimize risks,” wrote Dr. Leanne Allen, head of AI.
Allen praised companies for investing in their workers, but stressed that roles are likely to change under the influence of AI. In the future, business leaders should pay as much attention to role support as workers.
Follow TechRadar on Google News And add us as your favorite source to get our news, reviews and expert opinions in your feeds. Make sure to click the Follow button!
And of course you can too follow TechRadar on TikTok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp Also.
