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 to Fortune in Davos, Switzerland, Kande revealed that 56% of companies are seeing no tangible benefits from their AI investments.

Kande emphasized that the traditional CEO mandate of growing existing business, allocating capital, and implementing technology for productivity is outdated. He described a new "tri-modal" mandate requiring leaders to simultaneously manage current operations, transform them in real time, and develop entirely new business models. This shift, according to Kande, represents a more significant change in the CEO's role in the past year than in the previous 25 years.

The lack of return on AI investments highlights a critical disconnect between technological adoption and strategic business integration. This situation is occurring against a backdrop of global economic uncertainty, reminiscent of historical periods like the tariff era a century ago and the Industrial Revolution. The pressure on executives is immense, as they navigate technological disruption while striving to maintain profitability and explore new revenue streams.

PwC, a multinational professional services network, provides assurance, tax, and consulting services to businesses worldwide. Kande's remarks reflect the firm's observations of the challenges its clients face in adapting to the evolving technological landscape. The firm's global perspective allows it to identify common pitfalls and best practices across diverse industries and regions.

Despite the challenges, Kande remains optimistic, urging business leaders to embrace the future rather than fear it. He acknowledged the unsettling nature of constant change but emphasized that uncertainty is a recurring theme throughout history. The key, according to Kande, lies in mastering the "basics" of business while simultaneously navigating the complexities of AI and other emerging technologies. The ability to successfully execute this tri-modal mandate will likely determine which companies thrive and which fall behind in the years to come.