Introduction
Of all sectors, tech companies face the biggest opportunities and threats from AI. Many play a pivotal dual role, as users of AI and providers of AI to all other sectors. They now hold the pole position in the race towards an intelligent enterprise and set the pace for others to follow, but risk obsolescence at every turn.
Tech executives are no strangers to disruption, but AI is stretching their ability to navigate a fast-moving market while facing disruption and uncertainty. Some are leading the charge, building the AI that enables others to transform. Others are focusing on integrating AI into their current products and services. Fewer still have deployed AI fully in their own operations.
AI also threatens their current business models, as software development costs plummet, AI-native startups emerge and agents make it possible to deliver “serviceas- software” (new SaaS). To make this a perfect storm, add rapidly falling usage costs for frontier models, agentic AI expanding the opportunities for automation, multiple “battles” for leadership at every level of the tech stack, and along the value-chain, uncertainty on future power needs and rising geopolitical tension.
Tech executives need to solve at least three AI challenges in parallel. First, they must master the use of available AI tools to boost productivity in their own organization. Next, they need to embed AI into their products and services faster and better than their competitors. Finally, executives must prepare to adapt their business model to a world where all their customers and suppliers have adopted AI, while considering the role that agents will play in the near future.
To help our clients navigate this once-in-a-generation journey, KPMG conducted multiple studies over 12 months, collecting quantitative and qualitative input from specialists in industry and academia. We analyzed 500 KPMG AI client engagements, surveyed 1,390 global decision-makers and quantified the potential value of adopting generative AI for 17 million companies, analyzing three billion data points in total.
Our research reveals a sector in rapid transition, marked by significant untapped opportunity, an accelerated pace of innovation and fluid competitive dynamics. Even within the industry, many companies still lack a clear AI strategy, adoption program, tech infrastructure and trust framework. We hope our blueprint for an intelligent enterprise can be of help in navigating your journey to value with AI.
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