KPMG: Only 7% of Executives Can Prove AI Spending Returns
KPMG's survey shows that only 7% of executives claim they can prove the return on AI investments, while corporate AI costs continue to rise.
Over 2,000 executives globally were surveyed, with AI spending remaining high. About a quarter face pressure from investors to demonstrate value, with cost visibility and executive accountability becoming key gaps.
Capital and budgets are shifting from blind deployment to quantifiable results. Companies that control costs and hold CEOs accountable benefit, while organizations lacking measurement systems are under pressure, with funds accelerating towards vertical applications that can prove efficiency.
Source: Public Information
ABAB AI Insight
KPMG's continuous quarterly tracking shows that corporate AI is transitioning from experimentation to scaled deployment, but most remain at the stage of perceived value rather than financially verifiable stages. Previous surveys consistently showed ROI proof ratios in the low single digits, reflecting a measurement system lagging behind technology adoption.
Resources are shifting from general model usage to cost-visible agents and workflows, driven by investors and boards demanding a shift from "input narratives" to "result proofs". Projects lacking transparency face reductions or reordering.
This is similar to the early stages of cloud computing and big data waves, where "high input, low measurable returns" was prevalent, or the value verification dilemmas post large-scale ERP implementations. We are currently in a pragmatic calibration phase of the AI maturity curve, with the industry moving from enthusiastic expansion to selection and accountability.
Essentially, this represents a transfer of pricing power: the pricing of AI spending is shifting from potential premiums to verifiable outputs. The mechanism is that when the cost structure shifts from fixed to usage-based billing, organizations that cannot quantify returns will lose priority in internal capital allocation.
ABAB News · Cognitive Laws
- Input enthusiasm does not equal provable returns.
- Cost visibility is a prerequisite for ROI.
- Without accountability, technology remains in pilot mode.