Businesses, workplaces to record higher AI adoption in 2025 – PwC

The adoption of artificial intelligence (AI) is set to accelerate in 2025 as businesses recognise its potential to future-proof operations, according to a report by PwC.

According to the consulting firm’s ‘2025 AI Business Predictions,’ the successful integration of AI into businesses would rely on both vision and adoption. The report stated that decisions regarding AI would likely rank among the most critical choices for companies and their leaders this year.

Nearly half (49 percent) of technology leaders surveyed in PwC’s October 2024 Pulse Survey indicated that AI was already fully integrated into their companies’ core business strategies, with a third reporting that AI was embedded in their products and services.

The report underscored the transformative power of AI, citing its ability to deliver cumulative value across organisations.

“While AI has the potential to drive groundbreaking innovations such as new business models, the real game-changer lies in incremental improvements that scale over time. These advancements, which include productivity boosts of 20 percent to 30 percent, faster time to market, and increased revenue, could ultimately transform entire companies,” it said.

Matt Wood, PwC’s US and Global Commercial Technology and Innovation Officer, described AI adoption as progressing at a rapid pace across industries. “2025 will bring significant advancements in quality, accuracy, capability, 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 business transformation, AI is set to reshape the workforce. Anthony Abbatiello, PwC’s workforce transformation practice leader, predicted that AI agents—digital workers blending human creativity with machine efficiency—would revolutionise productivity and innovation.

Contrary to fears about AI-induced job losses, Abbatiello stated that these agents would enhance the workforce, effectively doubling the capacity of knowledge workers and roles such as sales and field support.

The report also highlighted AI’s impact on product development, revealing that lifecycles could be halved through its adoption. However, it warned that many companies are unprepared for the revolution in physical product design.

A skills gap remains a major hurdle, as engineers with expertise in design and manufacturing often lack foundational data science capabilities. PwC urged companies to prioritise upskilling and recruiting AI-savvy talent to fully capitalise on AI’s potential.

Scott Likens, PwC’s US and Global Chief AI Engineering Officer, emphasised the transformative power of multimodal vision and generation capabilities in AI. “We’re just starting to feel the impact of how these advancements will change product design and more,” he said.