Productivity gains, strong financial returns, but no job losses – three things investors want from generative AI

Investors are making it clear what they want from generative AI: solid financial and productivity returns, but no job cuts.

That's according to a survey of AI investors by PwC, which found three-quarters of respondents believed generative AI would be beneficial for the companies they've backed.

And six-in-ten investors polled said they expect not only revenue growth but also increased profitability, suggesting a close eye on the costs of AI.

The findings come amid concerns about the high costs of developing and deploying AI – and perhaps slower than hoped for returns on investment (ROI) for some companies.

Indeed, Microsoft said last summer it could take 15 years for its own investments in AI to pay off, but also suggested its customers could expect an ROI of $3.70 for every dollar spent, with further research suggesting AI investment was starting to show real returns.

"Generative AI has been a game changer for businesses worldwide, but investors now expect it to deliver real, measurable value," said Albertha Charles, asset & wealth management leader at PwC UK.

The survey examined AI's biggest opportunities in helping to scale businesses, measuring return on investment – something executives have struggled with – as well as shaping stakeholder perception, and enhancing workforce impact.

Generative AI gains require workforce investment

However, while 70% of investors said they'd like businesses to get on with deploying AI at scale, even more, some 77%, said that upskilling the workforce was more important, suggesting a view that investors want to see automation in addition to well-trained staff.

"They understand that success isn’t just about technology – it requires investment in people and new ways of working," Charles said.

"As AI adoption accelerates, investors will be watching closely to see how leaders balance technology with upskilling their workforce to unlock meaningful gains in profit and productivity."

That comes amid wider fears of the negative impact of AI on jobs, fueled by companies such as Salesforce and Workday, among others, attributing redundancies to a pivot to AI.

Research suggests upskilling workers is the only way to avert an AI job loss apocalypse – and PwC's survey suggests at least three-quarters of investors are onside with that.

Regulatory pressure

The survey revealed investors saw macroeconomic volatility, geopolitical conflict, and cybersecurity as the biggest risks facing businesses.

That said, PwC noted that government regulation was deemed an important issue to consider by investors. Six-in-ten respondents named it as a key pressure point for businesses over concerns it was holding back AI adoption.

“The government has been clear that there needs to be a shift in the balance between risk and regulation," said Darren Ketteringham, Financial Services Leader at PwC UK.

"Creating an environment where the financial services sector is more dynamic, resilient, and competitive, will make the UK more attractive to international investment, and we saw evidence of this in PwC’s recent CEO Survey, which showed the UK is the second most attractive global destination for international investment.”

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