Seventy-four percent of business leaders worldwide still rank artificial intelligence as a strategic spending priority even as companies wrestle with proving concrete returns, according to a new KPMG study. The research warns that allocating budget to AI is not the same as capturing durable value and that many organisations must reframe AI as a full-scale transformation rather than a peripheral add-on.
KPMG found that 64% of firms report AI is delivering meaningful business val...
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ue, yet three quarters remain worried about data security and privacy. The consultancy noted a clear shift from experimental generative models to more autonomous, agentic systems: 32% of respondents said they have deployed agentic AI at scale and 27% are operating multiple AI agents. That transition, KPMG argues, raises fresh demands for governance and operational discipline.
Only a small proportion of organisations qualify as AI leaders. KPMG places just 11% in that category, but those leaders are far more likely to extract value: 82% of them see significant benefits from AI compared with 62% of non-leaders. Confidence in risk management also varies sharply by maturity; roughly one in five early-stage firms feel able to manage AI risks, versus nearly half of companies identified as leaders. According to KPMG, firms that invest in workforce development are almost four times more likely to realise AI’s potential.
“There is no agentic future without trust and no trust without governance that keeps pace,” said Steve Chase, Global Head of AI and Digital Innovation, emphasising the need for sustained spending on people, training and change management if organisations are to scale AI responsibly.
The KPMG findings sit alongside broader market signals that suggest both promise and caution. Morgan Stanley’s 2026 analysis frames AI as a force reshaping macroeconomic investment patterns, projecting almost $3 trillion in global data centre building by 2028 and reporting that adopters among large-cap companies have seen outsized margin gains. The bank’s outlook predicts that productivity improvements tied to AI could drive a sizeable share of near-term global growth as firms move from deployment to concrete application in areas from autonomous vehicles to drug discovery.
Yet funding patterns have become more discriminating. S&P Global’s review of generative-AI financing shows investors shifting focus toward infrastructure and silicon suppliers, which have delivered steadier returns, while some enterprise software names face tougher scrutiny as customers demand clearer revenue and ROI prospects. Industry research cited by a market report similarly highlights the emergence of edge AI and robotics as areas of episodic leadership, even as hyperscalers provide more predictable performance.
Analysts and industry observers are increasingly attentive to execution risks. Axios noted that 2026 has seen a move from engineering spectacular prototypes toward demonstrating reliable, monetisable outcomes; leaders are racing to pair powerful models with deterministic systems and robust change programmes so AI can operate within complex business processes. The scale of geopolitical competition and the need for secure domestic infrastructure further complicate the landscape, according to Morgan Stanley.
Policy and capital flows also matter. A market intelligence report on AI spending trends points to vigorous corporate investment, active venture capital and targeted government support as shaping regional trajectories. That backdrop reinforces KPMG’s contention that data quality, governance, compliance and security must be addressed early if organisations hope to convert pilot success into enterprise-wide transformation.
The practical takeaway for companies is clear: continued capital deployment into models and compute will not automatically produce superior outcomes. Firms that pair technology investment with governance frameworks, targeted talent hiring, comprehensive training programmes and deliberate human–AI collaboration have the best chance of turning promise into performance.
Source: Noah Wire Services
