AI Investments to Surge in 2025 Amid Emerging Challenges

Artificial intelligence investments are poised for continued growth into 2025, according to the EY AI Pulse Survey, which found that 97% of senior business leaders report positive returns on their AI initiatives. Of the organizations currently investing in AI, 34% plan to allocate $10 million or more in the coming year, up from 30% six months ago. The survey, conducted among 500

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senior leaders across key industries, highlights increasing returns on AI spending in areas such as operational efficiency (84%), employee productivity (83%), and product innovation (78%). However, companies are facing mounting "data debt," with 83% of leaders stating that inadequate data infrastructure slows their AI adoption, and 67% admitting it actively hinders progress.

EY’s research underscores a growing awareness of risks tied to AI integration. Key challenges include governance, workforce fatigue, and AI’s energy demands. Over half of surveyed leaders reported declining enthusiasm for AI adoption and concerns over the energy-intensive nature of cloud computing, with 69% citing cost implications and 64% expressing sustainability concerns. As organizations prioritize responsible AI practices, the focus on employee training and governance is intensifying, with 59% planning to increase training efforts. EY experts emphasize that addressing these challenges is crucial for sustaining momentum and maximizing AI’s transformative potential.

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