PwC's Global Chairman, Mohamed Kande, has issued a stark warning to business leaders, asserting that a majority have lost sight of fundamental business principles amidst the rapid adoption of artificial intelligence. Speaking in Davos, Switzerland, Kande highlighted that 56% of companies are seeing negligible returns on their AI investments, signaling a significant disconnect between technological adoption and tangible business outcomes.

Kande emphasized that the traditional CEO mandate of growing existing businesses, efficiently allocating capital, and implementing technology for productivity gains is no longer sufficient. He argued that the role of the CEO has undergone a more profound transformation in the past year than in the previous 25 years. This shift necessitates a "tri-modal mandate," requiring leaders to simultaneously manage current operations, implement real-time transformations, and develop entirely new business models.

This call to action arrives as companies globally grapple with integrating AI into their operations. The underwhelming return on investment for a majority of businesses suggests that many are struggling to effectively deploy and leverage the technology. This has significant implications for market competitiveness, as companies that fail to capitalize on AI risk falling behind those that can successfully integrate it into their core strategies.

PwC, as one of the world's largest professional services firms, provides consulting, assurance, and tax services to a wide range of multinational corporations. Kande's remarks reflect the firm's observations of the challenges and opportunities facing its clients in the current economic landscape. His perspective is particularly relevant given PwC's global reach and its involvement in advising companies on digital transformation and AI adoption strategies.

Looking ahead, Kande urged business leaders not to fear the future, despite the inherent uncertainties. He drew parallels to historical periods of significant change, such as the introduction of tariffs a century ago and the Industrial Revolution, suggesting that the current challenges are not unprecedented. The ability to navigate this complex landscape will depend on a renewed focus on fundamental business principles, combined with a strategic and well-executed approach to technological innovation.