PwC: AI Strategy in the Boardroom Separates Market Leaders

A new PwC study reveals that, while AI investments continue to accelerate across industries, just 20% of organisations are capturing nearly three-quarters of the technology's economic value.

For boards and executive teams, this concentration of returns could signal a fundamental shift in competitive dynamics, where strategic AI deployment becomes the defining factor between market leaders and those left behind.

The research, which interviewed more than 1,200 senior executives globally, exposes a stark reality for business leaders.

While many organisations remain locked in pilot programmes and experimental phases, a minority of firms have moved decisively to embed AI into their core growth strategies and executive decision-making frameworks. The financial implications are significant: companies leading in AI deployment are generating 7.2 times the financial performance of their peers, according to PwC's findings.

"Many companies are busy rolling out AI pilots, but only a minority are converting that activity into measurable financial returns," says Joe Atkinson, Global Chief AI Officer at PwC. "The leaders stand out because they point AI at growth, not just cost reduction, and back that ambition with the foundations that make AI scalable and reliable."

The research was authored by Joe alongside Agnes Koops, Global Vice Chair & Global Chief Commercial Officer at PwC Netherlands and Matt Wood, Global and US Commercial Technology & Innovation Officer (CTIO), Partner at PwC US.

Strategic repositioning over incremental gains

For C-suite executives, the data presents a clear imperative: treating AI as merely an operational efficiency tool could mean forfeiting the most substantial value creation opportunities. Leading organisations are fundamentally rethinking their business models with AI as a central pillar of competitive strategy rather than a supporting function.

According to the research, top-performing companies are 2.6 times more likely to report using AI to completely reinvent their business model.

This strategic repositioning extends beyond process improvements to encompass new revenue streams, market positioning and industry convergence opportunities.

"We see it in the data, in the market and in the conversations we have daily with clients from around the globe: AI creates value when it's aimed at growth, not just cost," notes Agnes Koops on LinkedIn. "If AI is treated just as an efficiency tool, the biggest opportunity is being left on the table."

Businesses actively deploying AI to pursue opportunities created by industry convergence demonstrate two to three times greater likelihood of reporting meaningful financial outcomes compared to those focused purely on cost savings.

This divergence in outcomes could reshape competitive landscapes, potentially rendering traditional competitive advantages obsolete while creating new barriers to entry based on AI capabilities and data assets.

The strategic implications for boards are profound. Organisations that position AI as a growth driver are fundamentally changing how they compete, moving beyond traditional industry boundaries to create entirely new value propositions.

This requires executive teams to reconsider not just technology investments but also strategic planning horizons, partnership strategies and the very definition of their addressable markets.

Governance frameworks enable autonomous operations

The boardroom implications extend to risk management and governance structures. High-performing organisations are 1.7 times more likely than other companies to invest in responsible AI frameworks and cross-functional governance, addressing concerns around transparency, accountability and regulatory compliance that increasingly feature on audit committee agendas.

This investment in governance is enabling a fundamental shift in operational models. Leading companies are nearly three times more likely to increase decisions made without human intervention, signalling growing confidence in AI-driven processes.

For executive teams, this transition raises critical questions about organisational design, workforce planning and the balance between machine-led and human-led decision-making.

The research identifies three measurements of AI use and six foundational capabilities that determine what PwC terms "AI fitness". These metrics provide boards with a framework for assessing their organisation's position relative to competitors and identifying strategic gaps that could widen over time.

Establishing robust governance frameworks early proves essential for scaling AI initiatives across the enterprise. Companies that have embedded governance from the outset report fewer implementation delays, reduced regulatory friction and greater stakeholder confidence.

For boards, this means governance cannot be an afterthought but must be integrated into AI strategy from the beginning, ensuring that growth ambitions are matched by appropriate oversight and risk management capabilities.

Widening competitive divide threatens laggards

Perhaps most concerning for C-suite leaders is the accelerating pace at which this gap is expanding. While many organisations continue testing use cases, only a minority are translating these efforts into tangible financial impact. Leading organisations are not only moving faster but are also learning more quickly, refining their models and scaling successful applications at pace.

This dynamic creates a compounding advantage for early movers. Companies that have embedded AI into growth strategies are simultaneously building proprietary datasets, developing organisational capabilities and establishing market positions that could prove difficult for competitors to replicate. For boards overseeing organisations still in experimental phases, the window for strategic action may be narrowing.

The research suggests that success in capturing AI-driven value depends less on the volume of tools deployed and more on how deeply the technology is embedded into growth strategies, decision-making frameworks and organisational design. For C-suite executives, this could require a fundamental reassessment of capital allocation priorities, talent strategies and performance metrics.

The concentration of AI value among a small group of leaders suggests that competitive dynamics may be reaching a tipping point. As leading organisations continue to reinvest their AI-generated returns into further capabilities, the performance gap could become self-reinforcing.

For boards, this creates an urgent imperative to move beyond incremental approaches and commit to transformative AI strategies that can close the gap before it becomes insurmountable.

As AI continues reshaping competitive dynamics across sectors, the PwC findings present a clear challenge for boards and executive teams: develop a comprehensive AI strategy aligned with growth objectives, or risk falling permanently behind competitors who have already made that transition.