The adoption of artificial intelligence (AI) is expected to accelerate in 2025 as companies realize the potential for future-proofing their operations, according to a report from PwC.
According to the consulting firm’s 2025 AI Business Forecast, successfully integrating AI into your business depends on both vision and implementation. The report says decisions about AI are likely to rank among the most important choices for companies and their leaders this year.
Almost half (49%) of technology leaders surveyed in PwC’s October 2024 Pulse survey say AI is already fully integrated into their company’s core business strategy; 1 reported that AI is being integrated into their products and services.
The report highlighted the transformative power of AI, citing its ability to deliver cumulative value across organizations.
“AI has the potential to drive breakthrough innovations such as new business models, but the real game changer lies in incremental improvements that scale over time. 20-30% of productivity “Advances such as improved performance, reduced time to market, and increased revenue can ultimately transform entire enterprises.”
Matt Wood, head of U.S. and global commercial technology and innovation at PwC, said AI adoption is moving rapidly across industries. “2025 will see significant advances in quality, precision, functionality and automation that will continue to compound on each other, accelerating toward a period of exponential growth,” Wood said.
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In addition to transforming businesses, AI aims to reshape the workforce. Anthony Abbatiello, workforce transformation practice leader at PwC, predicted that AI agents – digital workers that blend human creativity with machine efficiency – will revolutionize productivity and innovation.
Contrary to concerns about job losses due to AI, Abbatiello said these agents will augment the workforce, effectively doubling the capabilities of knowledge workers and roles such as sales and field support. Ta.
The report also highlighted the impact of AI on product development, revealing that implementing AI could cut lifecycles in half. But he warned that many companies are not ready for the revolution in physical product design.
The skills gap remains a major hurdle, as engineers with design and manufacturing expertise often lack basic data science capabilities. PwC called on companies to prioritize upskilling and hiring AI-savvy talent to harness the full potential of AI.
Scott Likens, PwC’s US and global chief AI engineering officer, highlighted the transformative power of multimodal vision and generative capabilities in AI. “We’re just beginning to feel the impact of how these advances will change things like product design,” he said.
