Artificial intelligence is poised to redefine business strategies in 2025, with adoption accelerating as companies recognize its potential to future-proof operations, according to PwC’s latest AI Business Predictions released on Wednesday.
The report emphasized that AI success requires both vision and execution, with AI integration becoming a critical factor for business leaders. Nearly half (49%) of technology leaders surveyed in PwC’s October 2024 Pulse Survey reported that AI is now “fully integrated” into their core strategies, with a third embedding it into products and services. This integration, the report noted, drives incremental gains in productivity, speed to market, and revenue, transforming companies over time.
Matt Wood, PwC’s US and Global Commercial Technology & Innovation Officer, highlighted AI’s rapid advancements in quality, accuracy, and automation, predicting exponential growth in 2025. Similarly, Anthony Abbatiello, Workforce Transformation Practice Leader, dismissed fears of AI-induced job losses, pointing to the rise of AI agents as digital teammates that enhance productivity and innovation across industries.
The report suggested that AI adoption will double knowledge workforces, particularly in roles like sales and field support, transforming areas such as customer interactions and product design. It also forecasted that AI could slash product development lifecycles by half, driving faster time-to-market and greater personalization.
However, PwC identified a skills gap as a significant hurdle, with many engineers lacking foundational data science expertise. The report urged businesses to prioritize upskilling and recruiting AI-savvy talent to fully leverage AI’s transformative capabilities in product design and manufacturing.
Scott Likens, PwC’s US and Global Chief AI Engineering Officer, concluded that the multimodal vision and generation capabilities of AI are just beginning to impact industries. Companies that embrace these advancements will secure competitive advantages, lower costs, and achieve higher customer satisfaction.
