Many tech organisations are leveraging AI to enhance efficiency and streamline operations. This includes automation and efficiency gains, improving software development and customer service optimisation. But they also face challenges in data scaling, talent and expertise bottlenecks and navigating the ethical challenges of AI adoption.
To understand the complexities and opportunities of AI technology, KPMG conducted research from over 1,390 global leaders and quantitative analysis from leading AI specialists.
In addition, KPMG developed a detailed framework that outlines three phases of AI value. This structured approach is designed to assist technology companies in prioritising their AI investments, aligning initiatives with strategic business goals and effectively positioning themselves in the rapidly evolving intelligent economy.
Reimagining tech enterprises
Key insights
- Strategy & vision
- Spending & saving
- Future states
- Quotes
A clear vision and aligned strategy is critical for the Technology sector to unlock AI's transformative potential
Level of strategic alignment
Clarity of vision
AI spending will increase significantly, with flow-on benefits
85%
will increase the percentage of global budget spent on AI, with 63% saying this will be a 10% increase or more.
70%
have achieved cost savings, while 47% have seen a moderate-to-very-high ROI from their investments so far.
83%
of technology enterprises are exploring agentic AI.
Technology organisations are planning for more AI-integrated products and service
81%
are planning to systematically incorporate AI into their products and services in the next 12 months.
>50%
now report operating within a hybrid model that blends functional and agile approaches, reflecting the need for greater flexibility and responsiveness.
Realising value from your AI transformation journey
To address these challenges, KPMG introduces the three phases of AI value — a framework designed to guide technology companies through the AI adoption journey.
This phased approach can unlock significant value through AI-driven transformation, ensuring technology companies remain competitive and innovative.
Click on each of the phases to find out more.
Enable
The Enable phase focuses on enabling people and building AI foundations. Organisations appoint a responsible executive, create an AI strategy, identify high-value use cases, boost AI literacy, align with regulations and establish ethical guardrails. AI pilots are launched across functions, while cloud platforms and pre-trained models are leveraged with minimal customisation.
Embed
The Embed phase integrates AI into workflows, products, services, value streams, robotics, and wearables, delivering greater value. A senior leader drives enterprise-wide workforce redesign, re-skilling and change, embedding AI into operating models with a focus on ethics, trust and security. AI agents and diverse models are deployed, supported by cloud and legacy tech modernisation, while enterprise-wide data enhances operations.
Evolve
The Evolve phase evolves business models and ecosystems, using AI and frontier technologies like quantum computing and blockchain to solve large sector-wide challenges. AI orchestrates seamless value across enterprises and partners. Emphasising ethics and trust with real-time security, this phase uplifts human potential with broad and deep workforce training, fostering a creative, innovative and value-driven future.
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