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 even as they grapple with new technologies like artificial intelligence. Speaking to Fortune in Davos, Kande highlighted that 56% of companies are seeing negligible returns on their AI investments, suggesting a disconnect between technological adoption and core business strategies.

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

This tri-modal mandate, as Kande describes it, presents a significant challenge in a global market already facing considerable uncertainty. He drew parallels to historical periods of upheaval, such as the introduction of tariffs a century ago and the Industrial Revolution, to contextualize the current anxieties felt by executives. Despite these pressures, Kande urged business leaders to embrace the future rather than fear it, acknowledging the constant change but emphasizing the importance of adaptability.

PwC, as one of the world's largest professional services firms, provides audit, tax, and consulting services to a wide range of multinational corporations. Kande's remarks reflect a broader concern within the industry that many companies are rushing into AI adoption without a clear understanding of how it aligns with their overall business objectives. The firm's global reach gives Kande a unique perspective on the challenges and opportunities facing businesses across different regions and sectors.

Looking ahead, Kande's message suggests that success in the evolving business landscape will depend on a renewed focus on fundamental business principles, coupled with a strategic approach to technological innovation. Companies that fail to integrate AI effectively into their core operations risk falling behind, while those that can master the tri-modal mandate will be best positioned to thrive in the years to come.