The Future of AI: Executives Speak on What’s Next & the Challenges Ahead in KPGM Survey

Key Takeaways:

• Increased Investment: Executives plan to invest $114 million in GenAI over the next year, signaling a major commitment to AI adoption.
• AI Piloting Accelerates: The percentage of businesses piloting AI agents has jumped from 37% to 65%, showing a rapid shift from experimentation to execution.
• Key Challenges: 82% of executives cite risk management as the biggest challenge for AI strategies in 2025.
• Widespread AI Usage: Daily use of AI-powered productivity tools has surged to 58%, with knowledge assistants being used by 61% of executives.
• Building Trust: 32% of leaders identify trust in AI’s accuracy and fairness as the primary societal challenge by 2030.

Deep Dive

Artificial Intelligence (AI) is no longer a distant promise, it’s here, and it’s making waves across businesses of all kinds. A recent survey by KPMG gives us a peek into how top executives are thinking about the role of AI in shaping their companies' futures. The KPMG AI Quarterly Pulse Survey, conducted from February 25 to March 21, 2025, reached out to 100 business leaders from organizations with $1 billion or more in annual revenue. These leaders aren’t just making decisions for today, they’re laying the groundwork for the future of AI in business.

One of the standout findings from the survey is the dramatic increase in AI investments. Executives plan to pour nearly $114 million into Generative AI (GenAI) over the next year, up from $89 million last quarter. This isn’t just a little bump, it’s a clear signal that businesses are betting big on AI to drive change, disrupt industries, and redefine how things get done.

Steve Chase, KPMG’s Vice Chair of AI and Digital Innovation, puts it simply, “AI is more than just a tool. It’s an enterprise transformation. It’s rewriting business processes, challenging offerings, and driving cultural change.”

This isn't a small tweak in how companies operate, it’s a complete overhaul of how they think about doing business, from top to bottom.

What’s even more telling is the shift in how companies are approaching AI. The survey reveals that the number of companies moving from simply experimenting with AI to actively piloting AI agents has jumped from 37% to 65% in just one quarter. This signals a massive acceleration, as leaders move from the drawing board to real-world testing. But here’s the catch, despite all this activity, only 11% of companies have fully deployed AI agents.

So, what’s happening in between the experimentation and deployment phases? Leaders are seeing the immense potential of AI, and they’re working hard to figure out how to integrate it effectively. It’s a journey, but one that’s clearly picking up steam.

Risk, Data, and Trust

Of course, with all the excitement comes a big dose of reality. The survey also highlights the challenges executives anticipate as they push forward with their AI plans. A whopping 82% of leaders point to risk management as the biggest challenge they expect to face with their GenAI strategies in the rest of 2025. Right behind that? The quality of organizational data (64%) and building trust in the technology (35%).

It’s clear that while AI’s potential is undeniable, businesses are wary of the risks involved. Whether it’s data security, ethical concerns, or the uncertainty around how AI will make decisions, these challenges are top of mind for leaders who are eager to harness AI but need to do so responsibly.

Despite these concerns, there’s no denying that AI is becoming more embedded in the daily operations of businesses. The survey found a substantial increase in the use of AI-powered productivity tools, with 58% of leaders now using them daily, up from just 22% last quarter. Similarly, the use of AI knowledge assistants has jumped from 48% to 61%, with more businesses incorporating GenAI into existing workflows, moving from 24% to 35%.

As these tools become more ingrained in how businesses function, they’re not just making work easier, they’re becoming indispensable. Leaders see this as a natural progression toward fully embracing AI as part of the everyday business fabric.

Accuracy and Fairness on the Horizon

But it’s not all smooth sailing. A major concern for 32% of leaders is building trust in AI outputs, especially regarding the accuracy and fairness of AI decisions. With AI systems becoming more involved in decision-making processes, society’s trust in these systems will be a key challenge moving forward, particularly as we approach 2030.

As AI grows in influence, businesses must ensure that these technologies are not just effective, but also transparent and fair. It’s not just about what AI can do—it’s about how we can trust it to do it ethically.

As we look to the future, the KPMG AI Quarterly Pulse Survey paints a picture of a rapidly evolving AI landscape, one that is transforming how businesses think, operate, and innovate. For executives, AI is no longer a question of if, but when and how.

With the dramatic rise in investment and the increasing integration of AI into daily operations, there’s no doubt that we’re entering a new era of business. But as Steve Chase reminds us, AI is a transformation that goes beyond the technology, it’s about reshaping cultures, business models, and industries.

Organizations that can navigate the complexities of AI, from managing risks to ensuring data quality and building trust, will be the ones to lead the charge into this brave new world.

The future of AI is unfolding quickly, and businesses are on the front lines of this transformation. The question now is not whether AI will change the world, but how businesses can adapt and thrive in a world increasingly driven by artificial intelligence.

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