A recent PwC survey has highlighted UK investors’ strong belief in the transformative potential of Generative AI (GenAI) while emphasizing the necessity of workforce upskilling. The survey gathered responses from over 100 investors and analysts covering UK businesses, revealing a mix of optimism and caution surrounding AI adoption.
GenAI’s Productivity and Revenue Potential
According to the survey, 74% of UK investors believe GenAI will significantly enhance productivity in the businesses they support. This is notably higher than the global average of 66%. Additionally, 58% expect GenAI to drive revenue growth, while 60% foresee increased profitability. However, these figures slightly trail global expectations of 63% and 62%, respectively.
Beyond financial gains, UK investors recognize GenAI’s broader business value. The survey found that:
- 61% see AI as a tool for scaling operations,
- 42% believe it can improve ROI measurement,
- 43% think it positively influences stakeholder perception,
- 43% highlight its role in enhancing workforce capabilities.
Prioritizing Workforce Upskilling Over AI Deployment
Despite widespread support for AI adoption, UK investors overwhelmingly stress the importance of workforce development. The survey found that 77% of respondents prioritize upskilling employees over the 72% who emphasize large-scale AI deployment. This trend reflects a growing consensus that AI integration should complement human talent rather than replace it.
Albertha Charles, Asset & Wealth Management Leader at PwC UK, underscored this sentiment:
“GenAI has been a game-changer for businesses worldwide, but investors now expect it to deliver real, measurable value. They understand that success isn’t just about technology—it requires investment in people and new ways of working. As AI adoption accelerates, investors will be watching closely to see how leaders balance technology with upskilling their workforce to unlock meaningful gains in profit and productivity.”
Economic Outlook and Business Model Transformation
The survey also indicates growing economic optimism among UK investors. Around 53% anticipate global economic growth in the next year, slightly above the global average of 51%. Meanwhile, PwC’s CEO Survey found that 61% of UK business leaders expect economic growth in 2025, surpassing the global average of 58%.
Investor pressure for business model transformation is increasing, with 80% identifying technological change as their top concern. Other key areas of focus include:
- Supply chain instability (66%),
- Government regulation (63%).
This growing emphasis comes ahead of the UK government’s Financial Services Growth and Competitiveness Strategy, aimed at strengthening the country’s position as a global financial hub.
Darren Ketteringham, Financial Services Leader at PwC UK, commented on this development:
“The government has been clear that there needs to be a shift in the balance between risk and regulation. Creating an environment where the financial services sector is more dynamic, resilient, and competitive will make the UK more attractive to international investment. PwC’s recent CEO Survey showed that the UK is the second most attractive global destination for international investment.”
Macroeconomic and ESG Considerations in Investment Decisions
UK investors continue to factor in broader economic and geopolitical risks when making investment decisions. The top perceived threats include:
- Macroeconomic volatility (39%),
- Geopolitical conflict (35%),
- Cyber risks (34%).
Additionally, 70% of investors expect companies to enhance resilience against future global crises.
While environmental, social, and governance (ESG) concerns remain relevant, their priority has declined. The proportion of investors citing climate change as a key concern dropped from 36% in 2024 to 27%, and concerns about social inequality fell from 44% to 21%. However, sustainability remains a major factor, with 74% of investors stating they would increase investment in companies focused on sustainable supply chains and climate mitigation.
When evaluating net-zero transition plans, investors prioritize:
- Capital and operating expenditures (91%),
- Governance structures (89%),
- A clear roadmap to achieve net zero (75%).
Sustainability reporting remains a significant issue, with 41% of investors believing corporate sustainability disclosures contain unsupported claims. Additionally, 72% support holding sustainability reporting to the same level of assurance as financial reporting.
Beyond Financial Statements: New Investment Criteria
Investors are expanding their evaluation metrics beyond traditional financial statements. According to the survey:
- 48% consider management competence,
- 47% assess corporate governance,
- 42% examine innovation.
Materiality assessment disclosures (60%) and investor-focused communications (59%) are now viewed as equally important as traditional financial reporting (59%). Furthermore, direct engagement with company leadership is gaining traction, with 53% of investors valuing open dialogue.
The PwC survey underscores that UK investors recognize GenAI as a key driver of business growth and efficiency. However, they remain steadfast in their belief that technological progress should not come at the expense of workforce development. As AI adoption continues to reshape industries, businesses must strike a balance between leveraging GenAI’s capabilities and ensuring employees are equipped with the necessary skills to thrive in an evolving market.
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