Investors are bullish on AI, with the vast majority urging companies to upskill their workers to better leverage the technology, as they believe it will make them more productive and profitable in the long term.
This is according to Big Four firm PwC's annual Global Investor Survey. PwC polled 345 investors and analysts across 24 countries and territories in September and conducted in-depth interviews with 14 investment professionals. It found that a comfortable majority—73%—of the survey respondents said companies should deploy AI solutions at scale, likely because 66% expect the companies they invest in to deliver productivity increases from AI over the next 12 months, with 63% expecting revenue increases and 62% expecting it to increase profitability.
While there have been some public
"Investors expect to see real outcomes from GenAI over the next year and recognize that achieving this will take investment in people and upskilling, as well as technology," said PwC global assurance leader Wes Bricker. "Management can expect scrutiny on how they deliver AI productivity gains and support for an approach that extends beyond the tech itself to reinvent the way businesses operate."
Aside from AI matters, the survey also found that investors are generally optimistic about the global economy, with slightly more than half—51%—saying they believe it will grow over the next year, with fewer concerns about inflation and macroeconomic shocks. However, it is a cautious optimism, as they also cited cyber risk and geopolitical conflict as possible spanners in the works. With these risks remaining top of mind for investors, 86% of the respondents indicated that the ability of a company to manage through a crisis is an important factor in their investment decision-making, 60% of investors believe it is also very or extremely important that companies re-think their business models in response to supply chain instability, and 68% said they should increase their investment to de-risk them.
Investors are looking for more information beyond what is on the financial statement. In particular, they are craving more information on corporate governance (40%) and innovation (37%). They tend to get this information through investor-focused communications and direct dialogue with the company. Fewer investors say they are relying on the financial statements and note disclosures, with the proportion of investors reporting that they rely on them to a large or very large extent going from 66% to 55% compared to last year. As investors look to qualitative data, AI may provide significant opportunities in analyzing information published by companies. Nearly two-thirds (62%) said it has significantly or moderately increased their ability to do so.
"Reliable information is the lifeblood of capital markets, yet today's pervasive flow of data can be a blessing and a curse," said Kazi Islam, global assurance strategy and growth leader for PwC US. "The expectation on business leaders is to communicate to investors what is material to their business, doubling down on transparency and consistency to ensure they are building trust through communication. As AI provides the capability needed to sift easier through these qualitative and quantitative data, ensuring consistent and effective communication from company leaders is imperative."
