The survey captures the view of 345 investors and analysts across 24 countries and territories, covering artificial intelligence, climate strategies and broader reporting. It finds that investors reject a trade-off between workers and AI, with more than 70 per cent urging companies to invest in both.

Investors have seen the hype and headlines about AI. Now the pressure is on for companies to turn artificial intelligence investment into impact, according to PwC's recently-released 2024 Global Investor Survey.

The survey reveals that 73 per cent of investors believe that firms should deploy AI solutions at scale, and over 60 per cent of investors expect companies to deliver productivity, revenue and profitability gains from generative AI within the next 12 months

The survey, which captured the views of 345 investors and analysts across 24 countries and territories, finds that investors see advances in technology as the most significant driver of change for the businesses they invest in (71 per cent), ahead of government regulation (64 per cent), changes in customer preference (61 per cent), and supply chain instability (60 per cent). 

The survey comes at a time when the use cases for AI in wealth management continue to be debated, and they carry implications for where investment should take place. 

The PwC survey found that investors are also not seeing a trade-off between AI and workers. Seventy-four per cent of respondents urge the businesses they invest in or cover to invest in upskilling their workforce. Thirty-two per cent expect AI to lead to headcount increases of 5 per cent or more – on par with the proportion who expect little to no change in headcount (31 per cent).  

“Investors expect to see real outcomes from GenAI over the next year and recognize that achieving this will take investment in people and upskilling, as well as technology,” Wes Bricker, global assurance leader, PwC US, said. â€śManagement can expect scrutiny on how they deliver AI productivity gains and support for an approach that extends beyond the tech itself to reinvent the way businesses operate.” 

Investors optimistic about global economic growth 
The survey finds that investors are cautiously optimistic about the global economy. Half of them expect the economy to grow over the next 12 months, with macroeconomic and inflationary concerns falling from their 2022 highs respectively, from 62 per cent to 34 per cent in 2024, and 67 per cent to 31 per cent. At the same time, investors' greatest concerns are cyber risks (36 per cent) and geopolitical conflict (36 per cent), both of which are largely unchanged over the last two years but have slightly risen from 2023, the survey shows.  

With these risks remaining top of mind for investors, 86 per cent agree that a company's ability to manage through a crisis is an important factor in their investment decision-making. Sixty per cent of investors also believe that it is very or extremely important that companies re-think their business models in response to supply chain instability and 68 per cent say they should increase their investment to de-risk them. 

Investors eye action on climate change  
Investors also continue to prioritize action on the impact of the climate, the survey reveals. Thirty per cent expect that the companies they invest in will be highly or extremely exposed to threats from climate change within the next 12 months, up eight points from 2022, although down two points from 2023. 

Seventy-five per cent of respondents agreed that they would moderately or significantly increase their investment in companies that are taking a range of climate-related actions, with the greatest support for taking action to build sustainable supply chains by working with suppliers and communities (80 per cent). When assessing companies’ net-zero transition plans, 72 per cent of investors said governance and associated capital or operating expenditures (68 per cent) are very or extremely important. Additionally, 71 per cent said that companies should incorporate ESG/sustainability directly into their corporate strategies – a similar level to 2023. 

However, there are obstacles. Forty-four per cent of those surveyed agreed that to a large or very large extent, corporate reporting about a company’s sustainability performance contains unsupported claims – marking little change over the past two years. Not surprisingly, 73 per cent are demanding a level of detail in assurance reports on sustainability information which is comparable with financial audits. 

“Investors continue to prioritize action on the impact of climate. They are increasingly interested in the governance and financial impact and commitment of companies’ net-zero transition plans,” Nadja Picard, global reporting leader, PwC Germany, said. â€śCompanies should embed sustainability in their strategies, particularly as investors continue to look at sustainability-related disclosures and communication to assess action.” 

Investors look beyond financial statements 
Investors value a wide range of data beyond financial information, particularly on corporate governance (40 per cent) and innovation (37 per cent). Most investors also report relying on multiple sources of information, including investor-focused communications (61 per cent) and direct dialog with the company (57 per cent). Significantly fewer investors (55 per cent) than in 2023 (66 per cent) report relying on financial statements and note disclosures to a large or very large extent. As investors look to qualitative data, AI could provide opportunities to analyze information published by companies – nearly two-thirds said they had significantly or moderately increased their ability to do so. 

“Reliable information is the lifeblood of capital markets, yet today’s pervasive flow of data can be a blessing and a curse. The expectation on business leaders is to communicate to investors what is material to their business, doubling down on transparency and consistency to ensure they are building trust through communication,” Kazi Islam, global assurance strategy and growth leader, PwC US, said. â€śAs AI provides the capability needed to sift easier through these qualitative and quantitative data, ensuring consistent and effective communication from company leaders is imperative.” 

Respondents in the survey were predominantly institutional investors, comprising portfolio managers (21 per cent), analysts (21 per cent) and chief investment officers (23 per cent), with 52 per cent having had more than 10 years of experience in the industry. Their investments covered a range of asset classes, investing approaches and time horizons, and the assets under management at their organizations ranged from $500 million to $1 trillion or more; 53 per cent of respondents are at organizations with total AuM of more than $10 billion.