KPMG Survey Reveals Strategic Shifts in AI Strategies in 2024

The potential of GenAI is well-documented, with one report from McKinsey predicting the technology will add trillions of dollars in value to the global economy by 2030. Organizations are scrambling to leverage this potential and keep up with the rapid advancements in AI. 

The enterprise AI strategies have now reached a new inflection point, according to KPMG, one of the Big Four accounting firms. The focus of business leaders has moved beyond simply investing in AI technologies. They are now actively scaling GenAI to unlock new revenue streams, boost ROI, and solidify their competitive edge. 

The results of the second KPMG AI & Digital Innovation Quarterly Pulse Survey show that the majority of leaders (80%) across the US recognize GenAI as a vital tool to gain a competitive advantage and market share.  While business leaders have different goals for their GenAI investments, the overwhelming majority (97%) believe that AI is a top priority. 

The report also reveals that revenue generation has overtaken productivity as the top ROI metric for GenAI spending. This is followed by improved decision-making (44%) and productivity (40%). At the end of Q2 2024, the opportunities to create value have shifted, with more emphasis on improving efficiency, product quality, and innovation. 

The KPMG survey is based on a survey of 100 U.S.-based C-suite and business leaders representing organizations with an annual revenue of $1 billion or more.

When choosing GenAI providers, the top priorities are technology and expertise (67%), scalability and performance (65%), and use case compatibility (54%). 

With business leaders looking to extract more value from GenAI investments, the importance of hiring tech professionals has more than doubled from 26% to 60% compared to the last quarter. There has also been a sharp rise in emphasis on AI training and capability-building initiatives, which has jumped from 35% to 59%. 

The emphasis on developing AI skills is not limited to the frontlines only, as executives have realized the growing need for AI expertise at the board level, and are also engaging directly in training.  Nearly half of CEOs (49%) are now leading GenAI initiatives at their organizations, marking an increase from 34% last quarter. Even more impressive is that 93% of leaders have reported participation in mandatory GenAI training, up from 19% last quarter. 

Boards are increasingly seeking members with GenAI expertise, as 73% of enterprises plan to recruit new board members to support GenAI strategy and oversight.

“Leaders are beginning to view GenAI investment and adoption as table stakes. Now, they’re focused on how to translate those investments into a competitive advantage. Organizations are making a massive push for AI talent and adjusting their business strategies to capitalize on GenAI’s transformative potential,” said Steve Chase, Vice Chair of AI and Digital Innovation, KPMG U.S.

(Peshkova/Shutterstock)

As business leaders push to harness the potential of GenAI, establishing and maintaining trust becomes even more crucial. According to the KPMG survey, the most effective practices to achieve this goal are to establish ethical frameworks (70%) and schedule regular audits and monitoring (58%). 

The chief long-term concern for GenAI adoption is cybersecurity (53%), followed by data privacy (52%) and data quality (39%).  There are also concerns about the impact of GenAI on sustainably. 

While GenAI can help create efficiencies to reduce carbon emissions, the increasing demand for compute resources can also generate more emissions. However, a high percentage of respondents (81%) in the KPMG survey believe that GenAI can accelerate the transition to sustainable energy. 

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