AI Investments Not Expected to Deliver Traditional ROI : Report

Why It Matters

The findings signal that AI is becoming a strategic, long‑term asset rather than a cost‑center, reshaping budgeting priorities across the UK’s corporate landscape. This mindset shift could accelerate AI‑driven innovation even in economic downturns, altering competitive dynamics industry‑wide.

Key Takeaways

• 65% will fund AI without measurable ROI
• 70% keep AI priority even in recession
• 94% already using or planning AI agents
• 58% plan AI spend over $50M next year
• Skills gap and data risk hinder ROI measurement

Pulse Analysis

The latest KPMG UK AI Pulse Survey underscores a fundamental re‑evaluation of how businesses justify AI spending. Traditional financial metrics, such as short‑term ROI, are losing relevance as leaders view AI as a strategic enabler for enterprise‑wide transformation. This mindset aligns with broader industry trends where AI is embedded in product development, customer experience, and operational efficiency, making it a core pillar of future growth rather than a peripheral experiment.

However, the path to realizing AI’s strategic promise is not without obstacles. Respondents identified a skills gap and heightened risk concerns—particularly around data privacy and cybersecurity—as the primary barriers to quantifying AI’s value. Additionally, 40 % of firms struggle to measure indirect or long‑term benefits, highlighting a need for new performance frameworks that capture qualitative gains. Companies are responding by investing in upskilling programs, adopting robust governance models, and improving data quality to mitigate these challenges and build a more reliable ROI narrative.

Despite the hurdles, investment momentum remains strong. Over half of the surveyed firms plan to allocate more than $50 million to AI within the next twelve months, with a sizable portion targeting expenditures above $100 million. The resilience of AI budgets—even amid recession fears—suggests that executives see AI as a competitive differentiator that can drive productivity, decision‑making speed, and profitability in uncertain markets. As AI matures, firms that successfully navigate talent and risk constraints are likely to capture disproportionate market share, reinforcing AI’s role as a cornerstone of future business strategy.