TLDR: A recent EY AI Pulse Survey reveals that 97% of senior business leaders investing in Artificial Intelligence are seeing positive returns, with a significant portion planning increased investments in 2025. Despite this bullish outlook, the survey highlights critical challenges including inadequate data infrastructure, growing AI fatigue among employees and leaders, and concerns over AI’s increasing energy consumption.
Ernst & Young LLP (EY US) has released new research indicating that Artificial Intelligence (AI) investments are projected to remain robust throughout 2025, with a near-unanimous 97% of senior business leaders reporting positive returns on their AI endeavors. This optimistic sentiment is reflected in investment plans, as 34% of companies already engaged in AI are set to invest $10 million or more next year, marking an increase from 30% six months prior.
The EY AI Pulse Survey, which gathered insights from 500 US senior business leaders across various industries, underscores the tangible benefits of AI adoption. Organizations committing 5% or more of their total budget to AI are experiencing higher and increasing rates of positive ROI. Specifically, improvements were noted across operational efficiencies (84%, up from 77%), employee productivity (83%, up from 76%), technology updates (82%, up from 74%), cybersecurity (81%, up from 74%), competitive advantages (80%, up from 73%), and product innovation (78%, up from 71%).
However, the rapid advancement and integration of AI are not without hurdles. A significant bottleneck identified is data infrastructure, with 83% of leaders stating that stronger data infrastructure would accelerate AI adoption, and 67% admitting that current deficiencies are actively hindering progress. Dan Diasio, EY Global Artificial Intelligence Consulting Leader, emphasized this point, stating, “Data infrastructure and management are table stakes for maximizing the potential of AI, but too many organizations are falling behind. Companies urgently need to build knowledge assets, capturing their unique expertise and processes, which will prove especially important as agentic AI models come online and revolutionize how we work.”
Governance and human capital also present growing pains. Six in ten (61%) senior business leaders reported increased interest in responsible AI practices over the past year, and half (51%) anticipate a greater focus on AI-related risks in the coming year. Furthermore, 59% plan to increase employee training on the responsible use of AI. Despite these efforts, ‘AI fatigue’ is emerging, with 50% of leaders observing declining company-wide enthusiasm for AI integration, and 54% of leaders feeling overwhelmed by AI’s rapid growth.
Another significant concern is the energy footprint of AI. Approximately half (49%) of senior business leaders expect cloud computing to escalate their organization’s energy consumption within the next 12 months. This raises concerns about cost implications (69%), negative impacts on sustainability and emissions goals (64%), and the reliability of energy supply (62%). Steve Wanner, EY Americas Industrials & Energy Leader, commented, “Leaders are waking up to the energy challenges inherent in scaling AI. To create innovative solutions that enable energy efficient and sustainable AI growth, companies must collaborate across the value chain, connecting the dots from energy providers to the end-use AI customer.”
Whitt Butler, EY Americas Consulting Vice Chair, summarized the current landscape: “Generative AI’s ‘terrible twos’ have been both volatile and shown incredible promise. Leaders are banking on AI as the future but our research uncovered challenges like data infrastructure, which are holding back adoption. Leaders must put emerging and evolving risks like data and change management at the top of their AI transformation agenda to maintain momentum and realize adoption.”
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The survey, conducted between September 24 and October 4, 2024, highlights a critical juncture for businesses as they navigate the opportunities and complexities of AI integration into 2025.
