Daijiworld Media Network – Davos

Davos, Jan 20: PwC global chairman Mohamed Kande has said that a majority of companies are failing to see meaningful results from their artificial intelligence (AI) investments because they have overlooked basic groundwork, even as spending and adoption of the technology continue to rise sharply.

Speaking to Fortune on the sidelines of the World Economic Forum meeting in Davos, Switzerland, Kande referred to a PwC survey which revealed that 56 per cent of companies are getting “nothing” out of AI initiatives. He said the problem lies not with the technology, but with weak execution.

Kande noted that the role of chief executive officers has changed dramatically, with leaders now expected to manage existing businesses, transform operations in real time, and simultaneously build new business models. He described AI as a major pressure point in this shift, saying the CEO’s job has changed more in the past year than in the previous 25 years.

Calling the present phase one of the most testing moments for business leaders, Kande said while the pace of change is creating uncertainty, similar disruptive periods have occurred in the past during major economic and industrial transitions.

PwC’s 29th Global CEO Survey, based on responses from 4,454 CEOs across 95 countries and regions, highlights a wide gap between AI adoption and actual outcomes. While companies have moved beyond debating whether to use AI and are actively deploying it, only 10 to 12 per cent reported revenue gains or cost savings from AI, the survey found.

Kande said organisations that are seeing positive results have focused on fundamentals such as clean data, well-defined processes and strong oversight. He added that in the rush to adopt AI, many companies have ignored these basics.

The PwC chief also pointed to a confidence gap among business leaders. While many CEOs remain optimistic about the global economy, fewer are confident about growing their own businesses. The survey shows that only three in ten CEOs expect revenue growth over the next 12 months, the lowest level recorded in five years.

He said this uncertainty is also influencing how companies approach talent and career development, as AI increasingly takes over routine tasks, potentially forcing changes in traditional entry-level learning models.

Despite the challenges, Kande struck an optimistic note, urging leaders to focus on long-term trends rather than short-term disruptions, and stressing that understanding change is key to navigating it successfully.