"Speaking with Fortune at Davos, PwC Global Chairman Mohamed Kande argued that the shortfall is not about AI's capability, but execution, noting that many companies "forgot the basics," including clean data, disciplined processes, and governance. The takeaway many leaders are drawing is that AI is failing to live up to expectations. That conclusion is wrong. The problem is not the technology. It is how leaders are framing the opportunity and how they are measuring success."
"Most companies are deploying AI through an efficiency lens. They ask where it can reduce labor, automate workflows, or deliver quick payback inside existing organizational structures. They then evaluate those efforts using traditional return-on-investment metrics designed for software tools or for headcount reductions. That approach misunderstands what AI actually changes. AI is not simply a better way to do the same work. It is a new economic input that collapses the marginal cost of high-quality analytical and intellectual labor."
Two decades of building operating-intensive businesses, including founding Freshly (acquired by Nestlé for about $1.5 billion) and leading Petfolk (backed by more than $150 million), show that when new technology meaningfully changes what is possible, organizations must rethink how they operate to capture full value. Many executives report little measurable ROI from AI—56% say AI has yet to deliver cost savings or increased revenue, while about 12% report gains on both. Execution failures such as unclean data, weak processes, and poor governance are common. Framing AI only as an efficiency tool and using traditional ROI metrics misunderstands its economic impact.
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