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Business Standard
5 days ago
- Business
- Business Standard
Tech firms must embrace AI fast or risk falling behind: KPMG report
The artificial intelligence (AI) boom is here, and tech companies need to act fast or risk losing competitive advantage, according to a recent report by KPMG International. According to The Intelligent Tech Enterprise report, while expectations and spending around AI are soaring, many tech firms around the world have yet to unlock the full value of their investments. The study surveyed 1,390 executives globally, including 183 from the tech sector, and drew on over 500 AI engagements conducted by KPMG. It found that while 88 per cent of technology leaders believe AI adoption is crucial for competitive advantage, only 47 per cent are currently seeing significant returns. Shareholder pressure is mounting, with 62 per cent of tech firms under increasing demand to deliver immediate results. Yet, even AI front-runners are struggling to scale their efforts effectively. Many companies lack a coherent AI strategy, the necessary infrastructure, or mechanisms to build trust in AI systems. Only 27 per cent reported having a 'transformational AI vision', and just 20 per cent have fully integrated AI into their broader business strategy. 'AI is triggering the biggest transformation wave the economy has ever seen. You want to be on the right side of that,' said Stanford professor Erik Brynjolfsson, who contributed to the report. AI opportunities remain untapped The report estimates the potential value of AI for 832 public tech companies at over $178 billion annually. This represents up to 16 per cent of earnings before interest, taxes, depreciation, and amortisation (Ebitda) for some firms, particularly in areas like customer analytics, operations execution and code generation. Still, KPMG noted a significant gap between what's possible and what's being achieved. While 70 per cent of respondents reported cost savings from AI, and 47 per cent cited high returns, challenges persist. Common barriers include data privacy concerns, talent shortages, and limited AI literacy across organisations. Just 44 per cent have clear plans for scaling AI or tracking its performance. 'This is likely to be the largest organisational change most firms will face,' the report states. 'You need a clear plan—and the courage to execute it.' India's tech sector ready to leap India's tech sector is ready to accelerate its AI adoption, according to Purushothaman KG, Partner and Head of Technology Transformation at KPMG in India. 'Eighty-one per cent of Indian tech firms plan to embed AI into products and services over the next year,' he said, highlighting the importance of strong governance, skilled talent and deep operational integration. With 63 per cent of Indian firms planning to increase AI spending by more than 10 per cent, the country has the potential to redefine its global competitiveness in the AI era. What should tech leaders do? To help tech companies close this gap, KPMG recommends five key actions: Develop a clear AI strategy with a solid business case and roadmap that can evolve as technology and markets change. Build trust in AI by using ethical frameworks, transparency tools, and systems that explain how decisions are made. Make products smarter by designing them with AI from the start and constantly improving them based on user feedback. Upgrade tech infrastructure, especially with intelligent cloud services and edge computing that bring data closer to where AI models run. Embed AI in day-to-day operations and encourage teams and customers to adopt and work with AI solutions. Grow with AI: Enable, embed, evolve The report also lays out a three-phase roadmap for companies looking to grow with AI:
Cision Canada
26-05-2025
- Business
- Cision Canada
Canadian business leaders call on government to 'act with urgency' to avoid a recession and help them invest for growth: KPMG survey Français
Recent business investments to address Canada's productivity gap at risk of being stranded TORONTO, May 26, 2025 /CNW/ - Heeding the call to address productivity challenges, three quarters of Canadian business leaders say their companies now invest as much as – if not more – than their U.S. and global competitors in technology, machinery, equipment and intellectual property, but American tariffs have put a stranglehold on revenue and are cutting off the funds earmarked for continued investment. In a new survey by KPMG in Canada, most leaders (92 per cent) also acknowledged that they must be bolder and further ramp up their investments in technology and innovation to build a more resilient, prosperous economy. However, six in 10 (59 per cent) say the current economic environment prevents them from investing in the "kind of technologies" that would improve their company's productivity. "These results reflect a more ambitious mindset within Canadian business, but they also acutely underscore the difficulties our economy faces right now," says Benjie Thomas, Chief Executive Officer and Senior Partner, KPMG in Canada. "Tech investment requires a strong bottom line and nine in 10 business leaders say it is essential that governments 'act with urgency' and not fall 'prey to complacency' in driving tax reform, eliminating interprovincial trade barriers, improving access to capital, and building infrastructure that unites us and opens new markets." A 2024 KPMG International survey of global businesses found that large Canadian companies are also outspending their counterparts, but, like the new Canadian survey, many of these investments are still in the early stages and have yet to make up for the extended period when Canadian firms undercapitalized on technology. "Canadian firms are at a critical junction in their efforts to modernize and boost productivity," adds Mr. Thomas. "The investments they have made in the last few years are making a difference with 75 per cent saying that their digitization efforts have generated the expected returns and benefits. A further three-quarters found their investments in artificial intelligence boosted their productivity by 10 per cent or more, with over a third saying these investments improved it by over 20 per cent. "There is a big risk that these investments will be stranded if companies don't have the capital to continue to invest." Key Survey Findings: 75 per cent of 250 Canadian business leaders say their company invests the same if not more than their U.S. and global competitors 92 per cent agree Canadian companies need to ramp up their investments in technologies or risk falling further behind the U.S. 88 per cent say Canadian companies need to be bolder, and not wait around for everyone else to adopt a certain technology 59 per cent say they can't afford to invest in the kind of technologies that would improve their productivity given the current economic environment 90 per cent say governments "must act with urgency to ensure Canada remains competitive and prosperous," adding "it's essential that our governments don't fall prey to complacency" 75 per cent say their digitization efforts have generated the expected returns and benefits 75 per cent say their investments in AI boosted their productivity by 10 per cent or more, with 37 per cent saying these investments improved it by over 20 per cent What the private sector wants Given ongoing trade uncertainty, three quarters (76 per cent) of respondents are bracing for the worst and taking steps to prepare for a Canadian recession, the survey finds. To mitigate the effects of a potential downturn, business leaders laid out their top priorities for the Canadian government: Remove interprovincial trade barriers and harmonize regulations and credentials (64 per cent) Undertake a comprehensive tax review to improve competitiveness (58 per cent) Streamline processes and expedite resource and major infrastructure projects (56 per cent) Indeed, more than eight in 10 (82 per cent) business leaders believe the elimination of interprovincial trade barriers will improve their company's efficiency and productivity. Almost eight in 10 (77 per cent) say that the 'Buy Canada' movement has helped boost their sales, and nearly nine in 10 (87 per cent) say it's prompted their company to look at Canada as a growth market. Eighty-four per cent also "hope the Buy Canada movement doesn't fizzle out" because they "need it to offset the ongoing trade uncertainty with the U.S.". As many as 75 per cent of business leaders no longer view the U.S. as a reliable market and nearly eight in 10 (79 per cent) are diversifying their export markets to reduce U.S. dependency. Over two-thirds (68 per cent) are investing in marketing and establishing relationships in new markets. Even if the trade uncertainty with the U.S. is resolved, 90 per cent of respondents "will still diversify to other markets," the research shows. "Pivoting their sales strategies will take time, and two-thirds are already struggling to make long-term plans given the ongoing economic uncertainty," says Monika Manza, Canadian Managing Partner, Advisory Services for KPMG in Canada. "Businesses need certainty. They are counting on government to take immediate and decisive actions that will allow them to not only manage through the transition but make investment decisions to drive growth. "They want to tap into the new nationalism and expand their market share across Canada. But that requires the will and leadership of governments across the country to break down artificial barriers to domestic trade. Business leaders want governments to reestablish Canadian tax competitiveness, making the country an attractive place to invest and allow them better access to capital so they can expand and continue to fund technology investments. And they want quick action to get the country building major projects that will take advantage of Canada's abundance of valuable natural resources." Trade uncertainty stunts investments More than half (54 per cent) say they have "already reduced" their investment, research and development (R&D) spending and/or capital expenditures for the next 12 months as a result of the ongoing U.S.-instigated global trade war. Fifty-seven per cent say they "will reduce" their investment, R&D spend or capital expenditures. "While it will take time for governments to tackle the priorities most important to the business community, many companies don't have the luxury of time and are already facing a revenue crunch," says Ms. Manza. "Already, more than half have cut their profit and sales outlooks, which will make it all the more difficult for them to reinvest in their companies at a time when we need every business to fire on all cylinders and maximize productivity." Other survey highlights: The survey findings reveal the impacts on business decisions from ongoing trade and economic uncertainty: 66 per cent say it is increasingly difficult to plan for longer term investments 54 per cent have "already reduced" their investment, R&D spending and/or capital expenditures for next 12 months 57 per cent"will reduce" their investment, R&D spend or capital expenditures 54 per cent have lowered their 12-month future profit outlook or guidance 58 per cent have lowered their sales outlook for the next 12 months 52 per cent have increased prices to customers 63 per cent "will increase" prices to customers 38 per cent say they have already laid off employees due to trade uncertainty and tariffs 49 per cent have imposed a hiring freeze 46 per cent are considering laying off employees and/or implementing a hiring freeze This survey – KPMG's third in five months – taps the opinions of 250 business leaders who lead primarily medium- and large-sized companies on their efforts to improve their organization's productivity and the impediments they face amid economic uncertainty and shifting trade alliances. About the KPMG in Canada Productivity Survey KPMG in Canada surveyed 250 business leaders in all industry sectors across Canada between May 9 and May 20, 2025, on Sago's premier business panel, using Methodify's online research platform. Thirty-one per cent lead companies with annual gross revenue between $500 million and $1 billion, 25 per cent report revenue between $100 million and $300 million, 22 per cent have revenue between $300 million and $500 million, 12 per cent between $10 million and $100 million, and 10 per cent, over $1 billion. No companies under $10 million in annual revenue were surveyed. Over half (52 per cent) of the companies are privately held, 28 per cent are owned by private equity firms, 18 per cent are publicly traded with headquarters in Canada, and 2 per cent are foreign-owned subsidiaries. KPMG LLP, a limited liability partnership, is a full-service Audit, Tax and Advisory firm owned and operated by Canadians. For over 150 years, our professionals have provided consulting, accounting, auditing, and tax services to Canadians, inspiring confidence, empowering change, and driving innovation. Guided by our core values of Integrity, Excellence, Courage, Together, For Better, KPMG employs more than 10,000 people in over 40 locations across Canada, serving private- and public-sector clients. KPMG is consistently ranked one of Canada's top employers and one of the best places to work in the country. The firm is established under the laws of Ontario and is a member of KPMG's global organization of independent member firms affiliated with KPMG International, a private English company limited by guarantee. Each KPMG firm is a legally distinct and separate entity and describes itself as such. For more information, see For media inquiries: Caroline Van Hasselt National Communications and Media Relations KPMG in Canada (416) 777-3288 [email protected] Roula Meditskos National Communications and Media Relations KPMG in Canada (416) 549-7982 SOURCE KPMG LLP
Time of India
22-05-2025
- Business
- Time of India
79% energy firms report AI-led efficiency gains; 60% record ROI above 10%: Report
New Delhi: About 79 per cent of energy companies surveyed globally reported measurable efficiency improvements from the adoption of artificial intelligence, with 60 per cent of them achieving returns on investment above 10 per cent, according to a new report by KPMG International. The findings were published in the report titled "Intelligent Energy: A Blueprint for Creating Value Through AI-Driven Transformation," based on a global survey of 163 senior executives from eight countries. According to the report, 56 per cent of the surveyed energy companies have moved beyond pilot projects to scaled AI implementations, while 44 per cent have embedded AI capabilities across multiple business functions. KPMG noted that 76 per cent of energy firms intend to increase their investments in AI over the next 12 months, with 63 per cent of them planning to raise spending by more than 10 per cent. Anish De, Global Head of Energy at KPMG International, said in the report, 'For AI to truly scale and deliver value, energy companies must rethink not just their technology, but their entire operating model.' The report highlights the emergence of agentic AI, which allows systems to autonomously manage workflows. In one case study cited in the report, a 21-day process was reduced to 18 minutes using AI agents. However, several challenges to AI adoption remain. Around 58 per cent of companies reported data quality issues due to inconsistent formats and legacy systems. Regulatory complexity was cited by 38 per cent of respondents, while 37 per cent pointed to budget constraints as a key hurdle. Only 13 per cent of the companies surveyed said they have an AI Centre of Excellence in place. Despite the challenges, 92 per cent of organizations indicated that they are investing in future-focused AI projects even without immediate return on investment expectations. These include applications in predictive maintenance, carbon emissions tracking, safety automation, and customer service. The report identifies use cases for AI in managing smart grids, autonomous energy trading, and optimising distributed renewable energy assets. It also notes the increasing adoption of AI in customer-facing areas, including demand forecasting and real-time service analytics. The report concludes that scaling AI across value streams and embedding it in real-time decision-making across generation, transmission, trading, and customer engagement will be critical for energy sector transformation.
Time of India
21-05-2025
- Business
- Time of India
93% believe AI integrated manufacturing firms will gain a major edge
KPMG International has unveiled a new report titled 'Intelligent Manufacturing- A BluePrint for creating value through AI Driven transformation' to better understand how manufacturing leaders can leverage AI as a transformative force. It elucidates on how the future belongs to those who recognize that AI is no longer just about automation. It's about autonomy, intelligence, integration and a new more effective way of production and supply chains, AI enables real-time decision-making, predictive analytics and self-optimizing example, AI can combine external and internal data points, such as client consumption patterns and global indices, to provide a meaningful decision support system around cost optimization and intelligent commodity forecasting. Agentic AI can act centrally understanding demand and supply to suggest an optimal inventory and enhanced customer delivery compliance. In the workforce, AI and augmented reality help train employees on best practices while automating routine tasks, supporting predictive maintenance and enabling dynamic scheduling. Finally, in the back office, AI streamlines finance, procurement and HR functions — areas that remain largely under-digitized in traditional manufacturing. The survey has contributions from 183 senior manufacturing AI leaders across 8 countries including India . S Sathish, Partner and National Sector Leader, Industrial Manufacturing, KPMG in India says "AI is no longer a choice but a strategic necessity. As organizations embrace intelligent technologies, they're not only enhancing efficiencies but redefining the existing industry operating models. With sustainability, data-driven insights, and structured AI adoption at the core, manufacturers have a unique opportunity to unlock lasting value and competitive advantage in an ever-evolving landscape." Key Findings from the Report: 93 per cent believe that manufacturing organisations that fully integrate AI will gain a significant competitive edge over those that do not96 per cent have experienced operational and efficiency improvements and 62 per cent experiencing an ROI of greater than 10 percent80 percent of organisations have invested in AI knowledge and skills training, while 72 per cent have focused on building a comprehensive business74 per cent are using machine learning, 72 percent predictive analytics, 67 per cent are using agentic AIAI adoption is having the greatest impact on R&D and IT functions, according to 77 per cent of industry leaders. However, its influence extends across the value chain, with 70 per cent citing significant operational improvements as AI becomes embedded into core business functionsEncouragingly, 89 per cent believe employees are quickly adapting to AI tools and technologies, supporting widespread adoption across the workforce78 per cent believe meeting sustainability targets is more important than AI56 per cent of manufacturers have faced data-related issues when implementing AI solutions. To maximize value creation, manufacturers should align AI efforts with core operational strengths in a way that fosters trust, builds sustainable infrastructure and empowers the workforce Design an AI strategy that aligns with core competencies and unlocks valueBuild trust into the AI transformation roadmapCreate sustainable technology and data infrastructure for AI adoptionBuild a workforce culture that uses AI to augment human potential. Lastly the manufacturing sector stands at the cusp of an AI-powered transformation that will redefine how value is created — from product design and production to supply chains, maintenance, and customer relationships. What was once a primarily physical industry is now becoming deeply digital, driven by intelligent automation, predictive analytics and increasingly autonomous systems. Organisations can adopt a 3 phased approach for AI transformation. Enable phase which focusses on building foundation, Embed Phase focusses on leveraging AI across organisational value streams and Evolve phase redefines industrial operating models by working on connected ecosystems. As we look to 2030, the most successful manufacturers will be those that fuse human ingenuity with machine intelligence — creating organizations that are not just automated, but truly intelligent.
Hans India
19-05-2025
- Business
- Hans India
Manufacturing firms that fully integrate AI will gain significant edge: Report
New Delhi: About 93 per cent industry leaders across eight countries, including in India, believe that manufacturing organisations that fully integrate AI will gain a significant competitive edge, a report showed on Monday. About 96 per cent have experienced operational and efficiency improvements and 62 per cent experiencing an ROI of greater than 10 percent, while 80 per cent of organisations have invested in AI knowledge and skills training, said the KPMG International report. About 74 per cent are using machine learning, 72 per cent predictive analytics and 67 per cent are using agentic AI. For production and supply chains, AI enables real-time decision-making, predictive analytics and self-optimising workflows. According to the 'Intelligent Manufacturing Report,' AI can combine external and internal data points, such as client consumption patterns and global indices, to provide a meaningful decision support system around cost optimisation and intelligent commodity forecasting. Agentic AI can act centrally understanding demand and supply to suggest an optimal inventory and enhanced customer delivery compliance. In the workforce, AI and augmented reality help train employees on best practices while automating routine tasks, supporting predictive maintenance and enabling dynamic scheduling. Finally, in the back office, AI streamlines finance, procurement and HR functions — areas that remain largely under-digitized in traditional manufacturing, the report mentioned. 'AI is no longer a choice but a strategic necessity. As organisations embrace intelligent technologies, they're not only enhancing efficiencies but redefining the existing industry operating models,' said S Sathish, Partner and National Sector Leader, Industrial Manufacturing, KPMG in India. With sustainability, data-driven insights, and structured AI adoption at the core, manufacturers have a unique opportunity to unlock lasting value and competitive advantage in an ever-evolving landscape, he added. AI adoption is having the greatest impact on R&D and IT functions, according to 77 per cent of industry leaders. However, its influence extends across the value chain, with 70 per cent citing significant operational improvements as AI becomes embedded into core business functions Encouragingly, 89 per cent believe employees are quickly adapting to AI tools and technologies, supporting widespread adoption across the workforce, said the report.
