- Productivity, work quality and decision-making are bigger ROIs than profitability
- Leaders aren’t confident measuring non-financial ROI, though
- Worker upskilling and job spec redefinition should be prioritized
New data from KPMG has claimed some companies are continuing to invest in AI despite poor returns on investment, however it could be time to reframe expectations and focus on far more than just traditional financial ROI.
The report outlines how organizations are increasingly seeing it as a long-term strategic investment for transformation, rather than just focusing on short-term and immediate value.
As a result, profitability has slipped as a priority, cited by 64% of KPMG’s sources, compared with non-financial metrics like productivity gains (76%), quality of work (71%) and better decision-making (67%).
Article continues below
AI is about full company transformation, not just profitability
The difficulty comes with actually measuring ROI – while profitability can be observed on the accounts, only 14% are confident in measuring indirect and strategic returns due to challenges with quantifying benefits. On the whole, KPMG summarizes that traditional ROI frameworks don’t actually map well to AI outcomes.
Despite this unclear ROI, around two in three (65%) companies are set to continue investing regardless of measurable returns, with AI now seen as a ‘must-have’ much like cloud. Agentic AI seems to be one of the biggest priorities, with nearly all (94%) using or planning to use AI agents.
As for what this means for the workforce, KPMG says AI doesn’t just require a tech shift, but a broader organizational change to accommodate workers in new types of roles. Around half are already redesigning roles around AI (48%) and hiring dedicated AI specialists (52%), three in five are upskilling their staff (61%) too.
Despite ongoing training efforts, for many, the shift is simply too big, with 46% citing skills shortages as a major barrier. The usual culprits – privacy, security and governance – are also still hurdles for many.
“Whatever form of AI an organisation is using or planning to use, it is critical to have the right guardrails in place to minimise risks,” AI Head Dr Leanne Allen wrote.
Allen praised companies for investing in their workers, but stressed that roles are likely to change under the influence of AI. Looking ahead, business leaders should pay as much attention to role support as they do workers.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
https://cdn.mos.cms.futurecdn.net/yDFnJ44ktNuARB8aa5foZP-2560-80.jpg
Source link
