Over 60% of investors expect companies to deliver productivity, revenue and profitability gains from generative AI within the next 12 months, according to PwC’s 2024 Global Investor Survey.

Almost three-quarters (73%) of investors say companies should look to deploy AI solutions at scale, with 66% expecting the companies they invest in to deliver productivity increases from AI over the next year, 63% expecting revenue increases, and 62% expecting it to increase profitability.

PwC’s survey of 345 investors and analysts also found investors see technology as the most significant driver of change for the businesses they invest in (71%), ahead of government regulation (64%), changes in customer preference (61%), and supply chain instability (60%).

The results show, however, that investors aren’t pushing businesses to phase out their workers in favour of AI agents, with 74% of respondents urging businesses to invest in upskilling their workforce, and almost a third (32%) expecting AI to lead to headcount increases.

Away from emerging tech, the survey found that investors increasingly value data beyond simple financial information, and in particular are looking for more around corporate governance (40%) and innovation (37%).

PwC said that as investors look to more qualitative data, AI could potentially provide opportunities in analysing information published by companies, with nearly two-thirds (62%) saying it has increased their ability to do so. 

The survey found that this year,  investors’ greatest concerns are cyber risks (36%) and geopolitical conflict (36%), both largely unchanged over the last two years, but almost nine in ten (86%) agree that the ability of a company to manage through a crisis is an important factor in their investment decision-making. 

Almost two-thirds (60%) of investors believe it is also very or extremely important that companies re-think their business models in response to supply chain instability, with 68% saying they should increase their efforts to de-risk them. 

PwC also found that the race to net zero is impacting investment decisions, with 75% of respondents agreeing they would increase their investment in companies taking climate-related actions.

When assessing companies’ net-zero transition plans, investors say governance (72%) and associated capital or operating expenditures (68%) are very or extremely important, while 71% say companies should integrate ESG/sustainability directly into their corporate strategies.

Recommended reading

• New Report Reveals Gen AI’s Potential Impact on Future Management
• IT Pros Divided Over How AI Can Improve Workplace Experience
• Salesforce: UK Leads G7 In AI Readiness

Unsurprisingly, that emphasis on sustainability and climate action means that 73% of investors now demand a level of detail in assurance reports on these issues comparable to that around financial audits.

“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,” said Kazi Islam, global assurance strategy and growth leader at PwC US.

“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.”