Improving productivity may seem like a logical goal of embedding AI into the enterprise, but that simply won't cut it.
While 81% of enterprises report having used AI to speed up decision-making, only 25% report that it has meaningfully transformed the business, according to Deloitte's State of AI in the Enterprise report, which surveyed 3,500 global business leaders. This gap matters because, as Jim Rowan, head of AI at Deloitte, explains, real ROI for enterprises is only possible when meaningful transformation is achieved.
"The real ROI comes not only from doing existing work faster, but from redesigning work altogether," Rowan told The Deep View. "The report shows that AI is already helping most companies move faster. The next test is whether they can use that momentum to change how they operate, make decisions, and create value."
However, many of the companies reported that they have failed to implement AI in more meaningful ways than just productivity gains. Deloitte found that, while 60% of the companies surveyed have redesigned jobs around AI, only 15% reported to have redesigned jobs extensively or completely. Furthermore, only 15% report a significant fundamental shift in decision-making authority as a result of AI.
The Wharton School of the University of Pennsylvania's fourth annual report on the state of AI found similar results regarding this disconnect in tracking real AI ROI: Around 40% of respondents reported measuring AI returns by hours saved. Net-new revenue was the least utilized metric for success, with 27% reporting that they track this. However, the departments tracking returns by productivity are doing better comparatively.
Despite the drawbacks, the Deloitte report found revenue gains from AI rose to 28%, up from 20% in the January report. Even though this number is encouraging, Rowan said that it is not a guarantee that returns will compound automatically. Rather, it reemphasizes the need to redesign operations around AI.
"The organizations most likely to scale successful use cases across the enterprise treat AI as a transformation initiative rather than a technology rollout, redesigning workflows, establishing governance structures, and building accountability mechanisms," added Rowan. "Without addressing those challenges, organizations risk reaching a plateau where AI increases activity and spending without producing proportional business value."
Our Deeper View
The transformation AI is bringing to businesses resembles earlier shifts, like moving to the cloud, installing Wi-Fi, or upgrading employees to laptops. But because AI seems akin to any other software, organizations aren’t taking the precautions they would when handing an employee a new laptop: training them and teaching them how to actually use an unfamiliar technology. Instead, many assume that simply giving employees access to AI is a shortcut to returns. As a result, report after report finds that organizations aren’t unlocking AI’s full potential. This is especially concerning given how much money enterprises are pouring into AI tools and upgrades. If that spending doesn’t start producing a measurable return soon, enterprises may start to pull back on their AI investments, potentially shaking a major pillar of revenue that frontier labs are counting on.