Enterprise firm’s AI strategies are facing high expectations, according to new research from KPMG, with 88% of executives believing that embracing the technology is one of the best ways of gaining a competitive edge over more reluctant peers.

The professional service giant’s latest study, Intelligent Tech Enterprise, found that, just a few years into the genAI era, many companies are putting themselves, and their AI investments, under increasing pressure to demonstrate returns.

KPMG’s study, based on a poll of 1,390 decision-makers across global markets, discovered that 62% are feeling the heat as shareholders begin to demand an immediate demonstration of ROI from spiraling AI investments.

Expectations are no lower among tech executives themselves, with 68% predicting moderate to very high returns from AI of at least 10%, with almost a third (28%) of businesses already using AI to gain an edge.

Competition is heating up because of potential value at stake. KPMG’s figures show that even low complexity genAI systems could bring in an additional $17.5 million (£12.9m), while firms introducing high complexity genAl could see an almost $93 million boost (£69m).

According to KPMG, that value stems from the competitive advantages AI can bring. That includes expanding offerings to new and underserved markets, bringing products to market faster and at lower cost, and inspiring hybrid operating models that blend functional and agile approaches. 

With so much to gain, companies are throwing more money at AI development and deployment. The report found that 85% of firms expect to increase the percentage of their global budgets spent on AI, with well over half (63%) saying they will spend at least 10 percent more.

Most of this will be focused on the back office, which has so far seen limited adoption, but where KPMG’s report suggests genAI integration could present a $77 billion (£57bn) opportunity, mostly in product and IT functions which alone accounts for more than $54 billion (£40bn) across global tech markets.

However, KPMG said that the firms it surveyed are far from releasing AI’s full potential. Many companies are still facing hurdles including around security and data privacy (36%), a lack of AI literacy and skills (33%), an evolving regulatory landscape (25%), and difficulty in measuring ROI (24%).

KPMG found that a significant number of firms appear unprepared to map AI investments to clear outcomes, with 44% of companies yet to establish concrete ROI measures, and another 44% unable to measure AI scalability.

“Real returns from AI come when it’s embedded across the business, not just piloted in pockets,” said Joe Cassidy, UK head of technology, media & telecoms, for KPMG.

“The focus now must be on scaling what works and measuring impact at every step.”

Recommended reading

• GenAI Spending to Reach $644BN Globally in 2025
• Ofcom Warns Platforms on GenAI Safety Standards
• What Key GenAI Advancements Will Shape the Future of Procurement?

To help deliver more value, KPMG said that firms should look to build AI maturity across three distinct phases.

The first is to build a solid foundation based on boosting AI literacy among the workforce, developing an AI strategy aligned with regulations, establishing ethical guardrails, and creating high-value use cases.

In phase two, KPMG said firms should look to embed AI into workflows, products and services. The focus here should be on breaking down silos, integrating AI across core functions, and tracking metrics like customer satisfaction scores and speed to market to gain real-time insights and improve decision-making. 

In the final phase, companies should build on these insights to deliver sustainable outcomes, form fluid business models, and look to solve industry-wide problems.