CEOs Declare AI as Prime Investment Destination: KPMG Study

NNicholas October 8, 2023 8:06 PM

Artificial intelligence has become a top investment priority for US CEOs, with over two-thirds considering generative AI as a major focus for their companies, according to a new KPMG survey. The AI industry, spurred by OpenAI's ChatGPT, has rapidly penetrated the corporate landscape, promising significant future returns.

AI investment skyrockets among CEOs

Business leaders are increasingly recognizing the potential of artificial intelligence for corporate growth and innovation. According to a new KPMG survey, over two-thirds of US CEOs now rank investment in generative AI as a primary priority for their companies. The rise of AI in the business landscape is not mere hype, as it promises to bring disruptive changes that require the CEOs' close attention.

AI revolution sweeps corporate America

Artificial intelligence isn't just a buzzword anymore; it's becoming a reality in corporate America. The recent boom in AI adoption, ignited by OpenAI's release of ChatGPT, has seen major players like Amazon, Meta, and Zoom ramping up their AI strategies. From Amazon's massive $4 billion investment in AI startup Anthropic, to Meta's new generative AI tools for advertisers, to Zoom's AI product unveilings, the corporate landscape is quickly being reshaped by AI.

AI investment forecast: $200 billion by 2025

The investment in AI is not just a passing trend; it's a wave of the future. Analysts at Goldman Sachs forecast that AI-related investments will not only continue to grow but will explode in the coming years, reaching a whopping $200 billion globally by 2025. This massive influx of capital signifies the high expectations placed on AI's potential to revolutionize various industries.

While there's no doubt about the excitement around AI and its potential to bring unprecedented changes, the returns on these investments might not materialize immediately. KPMG's survey found that 62% of CEOs expect to see a return on their AI investments within three to five years, while 23% expect returns in just one to three years. As businesses are still in the ideation stage of their AI investments, it may take some time for these investments to fully pay off.

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