PwC's global chairman, Mohamed Kande, has issued a stark warning to business leaders, stating that many have lost sight of fundamental business principles amidst the rapid adoption of artificial intelligence. Speaking to Fortune in Davos, Switzerland, Kande revealed that a significant 56% of companies are seeing "nothing" in terms of 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 no longer sufficient. He argued that the role of the CEO has undergone a more dramatic shift in the past year than in the previous 25 years. This transformation necessitates a "tri-modal mandate" requiring executives to simultaneously manage their current operations, transform them in real-time, and develop entirely new business models for the future.

This situation presents a challenge for global markets, as companies grapple with integrating AI while maintaining profitability and adapting to evolving consumer demands. The pressure to innovate is immense, but Kande's comments suggest that many organizations are struggling to effectively leverage AI to achieve a return on investment. This could lead to a slowdown in overall productivity growth and potentially impact investor confidence in companies heavily reliant on AI strategies.

PwC, as one of the world's leading professional services firms, has a unique vantage point on the challenges and opportunities facing businesses across various sectors. The firm provides consulting, assurance, and tax services to a wide range of clients, giving it insight into the practical realities of AI implementation and its impact on financial performance. Kande's remarks highlight the need for businesses to approach AI adoption with a clear understanding of their strategic goals and a focus on fundamental business principles.

Looking ahead, Kande urged business leaders not to fear the future, despite the uncertainty and rapid pace of change. He drew parallels to historical periods of disruption, such as the introduction of tariffs a century ago and the Industrial Revolution, suggesting that businesses can navigate the current challenges by focusing on adaptability and a willingness to embrace new approaches. However, the immediate implication is a renewed focus on strategic planning and a more measured approach to AI investment, ensuring that technology serves business objectives rather than driving them blindly.