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Adopting AI Will Make Or Break Businesses, Prediction Report Finds

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Businesses that fail to integrate artificial intelligence (AI) into their operations will fall behind, according to PricewaterhouseCoopers’ (PwC) latest AI Business Predictions report. While weekly developments in AI technology create uncertainty about specific model adoption, the imperative for strategic implementation remains clear. PwC’s analysis shows that companies must move beyond viewing AI as experimental technology and instead position it as a core business driver.

PwC predicts that setting an AI strategy will help businesses adapt to the constant change of developments. Businesses will either learn to take big leaps in AI adoption, setting the course of their businesses to welcome structural changes, or, struggle to catch up. Here are key insights PwC predicts that will affect businesses in 2025:

Strategic Integration: Beyond AI Productivity Gains

Businesses are moving away from stand-alone use cases of AI to integrative approaches with broader business objectives. For instance, what was formerly an AI tool with a single use within one department is now evaluated as a possible dual-use or multi-use AI system serving more than one department. In the last year, AI strategies shifted to serve holistic business needs. Nearly half of technology leaders (49%), surveyed in October 2024 for PwC’s Pulse Survey, reported full integration of AI into corporate strategies, with 33% embedding it into products or services. Three implementation approaches are noted:

  • Ground game: Systematically deploy AI for incremental wins (e.g., 20–30% productivity boosts in workflows).
  • Roofshots: Pursue attainable innovations like AI-enhanced customer interactions or dynamic pricing models.
  • Moonshots: Invest in AI-driven business models, such as reimagined supply chains or entirely new revenue streams.

Workforce Transformation: The Rise of AI Agents

AI agents—autonomous digital workers—will double workforce capacity in roles like customer service, coding, and design. At the moment AI adopters from these departments use AI agents for basic operations, first drafts, and to craft prototypes from original designs. The use of AI across departments shines a light on how business leaders can adapt their existing workforce and build hybrid teams where humans oversee agents, combine outputs, and drive innovation.

With this approach, workflows will fundamentally change. Yet, this restructuring will keep AI-skilled professionals at the center of the operating models. A new team structure can manage blended human-AI teams, providing new governance roles to monitor agent performance, and set up geographic “centers for agents” to optimize costs.

Governance: Trust as a Strategic Asset

Per a 2024 PwC survey on Responsible AI, “46% of executives say that differentiating their organization, their products and their services is one of their top-three objectives for investing in responsible AI practices.” Stakeholders are demanding accountability, and making oversight frameworks non-negotiable.

To implement AI responsibly, business leaders need to reduce AI risks and comply with regional regulations. PwC recommends conducting third-party audits to validate AI controls and ROI, and align AI governance with financial and cybersecurity standards. Proactive AI adoption leaders are more likely to champion transparency, as trust gaps or breaches could derail revenue, reputation, and the success of projects.

Sustainability and Energy: Strategic Synergies

While AI’s computational demands raise energy concerns, applications in sustainability are growing. Sammy Lakshmanan, Sustainability Principal at PwC US, remarks, “It’s just not true that AI is anti-sustainability. If you use it right, AI makes not just carbon targets, but every sustainability goal more accessible.”

When used effectively sustainable AI tools can track the automation of emissions and regulatory compliance. It can optimize algorithms for renewable energy integrations, can monitor partnerships with energy-efficient providers, and generate additional suggestions for energy optimization. Integrating a sustainability strategy into AI implementations can balance innovation with environmental goals.

Balancing AI Implementation

Businesses are at a critical juncture in AI adoption. PwC’s 2025 AI Business Predictions reveal key implementation approaches that are reshaping competitive dynamics: systematic deployment for productivity gains, AI-enhanced customer interactions, and new AI-driven business models.

Success requires a balanced approach. Per the report, integrating AI into research and development teams can reduce time-to-market by 50% and lower costs by 30%. With the potential upside, businesses are seeking to act quickly, but careful considerations must be made to have enduring AI systems. Establishing a comprehensive AI strategy in 2025 may prove to be a key differentiator for businesses and teams in the years ahead.

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