Investors See AI as Key to Economic Growth and Job Creation in 2025
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– A new PwC Global Investor Survey reveals a strong belief among investors that artificial intelligence (AI) will be a major driver of economic growth and productivity in the coming year. Contrary to common fears about job displacement,many investors see AI as a catalyst for job creation and business transformation.
The survey, which polled 345 investors and analysts across 24 countries, found that over half (51%) anticipate global economic growth in 2025, with AI playing a significant role. A striking 60% expect AI to boost productivity, revenue, and profitability within the next 12 months.
AI’s Potential to Drive Productivity and Profits
The overwhelming majority of investors (73%) are calling for increased AI adoption in businesses.This enthusiasm stems from the belief that AI can substantially enhance operational efficiency. Two-thirds (66%) anticipate productivity gains for companies investing in AI within the next year, while 63% foresee revenue growth and 62% expect higher profitability.
Dispelling Job Displacement Fears
Addressing concerns about AI’s impact on employment,nearly one-third (31%) of investors believe AI poses little to no threat to jobs. Even more optimistically, 32% predict a 5% increase in employment due to AI-driven opportunities.
Investors expect concrete results from generative AI.They know that this requires not only investments in technology, but also in people and training. Leaders are called upon to enable productivity increases through AI and to fundamentally redesign business models,Rudolf Krickl, CEO of PwC Austria
Demand for Upskilling and Transparency
Recognizing the importance of human capital in the age of AI, three out of four investors (74%) advocate for improved employee training to maximize the effectiveness of AI implementation. Moreover, resilience in the face of crises is a crucial investment criterion for nine out of ten investors.
Focus on Sustainability and Reporting Standards
The survey also highlights the growing emphasis on sustainability and transparency. Investors are demanding stricter reporting standards and greater transparency in sustainability reporting, reflecting a broader shift towards responsible investing.
Investors in 2025: AI, Resilience, and Climate Action Top Priorities
– investors are increasingly prioritizing technological innovation, crisis preparedness, and climate action when making investment decisions, according to a recent survey of global investors. These key findings highlight the evolving landscape of investment priorities in 2025.
AI-Powered transformation Drives Investment Focus
Staying competitive in today’s rapidly changing market requires businesses to embrace technological advancements. A significant 71% of investors agree that innovations like artificial intelligence (AI) are crucial for transformation. This emphasis on AI adoption is further underscored by 74% of investors calling for increased investment in employee training to effectively utilize these new technologies. This reflects the growing recognition of AI’s potential to revolutionize industries and drive future growth.
Cautious Optimism for Economic Growth in 2025
Despite ongoing global uncertainties, investors express cautious optimism about economic prospects. Over half (51%) anticipate economic growth in 2025. This represents a notable shift in sentiment compared to 2022, with concerns about the overall economy decreasing from 62% to 34%.Similarly, anxieties surrounding inflation have significantly diminished, dropping from 67% to 31%. However, cyber threats and geopolitical conflicts remain top concerns, each cited by 36% of investors.
In an increasingly volatile world, robust crisis management is paramount. A striking 86% of investors emphasize the importance of strong crisis management in their investment decisions. furthermore, 60% expect companies to demonstrate adaptability in their business models to effectively address challenges such as supply chain disruptions. This highlights the growing premium placed on resilience and the ability to navigate unforeseen circumstances.
Climate Action: A Growing Imperative for Investment
Climate change is recognized as a major threat, significantly influencing investment strategies. Nearly one-third (30%) of investors anticipate that companies in their portfolios will be strongly or extremely affected by climate change in the next 12 months – a substantial increase from 2022. Reflecting this concern, 75% of investors are prepared to increase investments in companies actively combating climate change. Furthermore, there is a growing demand for greater transparency and accountability in sustainability reporting. With 44% of investors expressing doubts about the credibility of current reports, 73% are calling for sustainability reports to adhere to the same rigorous standards as financial audits.
The climate change is one of the biggest challenges of our time – and investors are counting on companies that actively offer solutions.
Investors Demand ESG Transparency: Sustainability Key to Winning Trust, Says PwC 2024 Survey
– According to a new global survey by PwC, environmental, social, and governance (ESG) factors are no longer a niche concern for investors. The 2024 PwC Global Investor Survey,which polled 345 investors and analysts across 24 regions,reveals a significant shift in investor priorities,with sustainability taking center stage.
The survey, encompassing a range of investment professionals managing assets from $500 million to over $1 trillion, found that investors are increasingly demanding clear and clear ESG reporting. Over half of the respondents (53%) work in organizations with total assets under management exceeding $10 billion, highlighting the substantial influence of this trend.
Clear, transparent reporting and sustainability as an integral part of the strategy are crucial. This is the only way companies can gain the trust of investors and stakeholders.Agatha Kalandra, Board Member and Sustainability Lead at PwC Austria
ESG Performance impacts Investment Decisions
The survey underscores the growing importance of non-financial disclosures. With 52% of respondents possessing over a decade of industry experience, the emphasis on ESG demonstrates a maturing understanding of its connection to long-term value creation.
This demand for transparency reflects a broader shift in the investment landscape. Investors are recognizing that ESG performance is not just a matter of social responsibility, but a critical indicator of a company’s long-term financial health and resilience.
Key Findings of the PwC 2024 Global Investor Survey:
- Strong demand for clear and transparent ESG reporting.
- Sustainability is increasingly viewed as essential for building investor trust.
- Experienced investors are leading the charge in prioritizing ESG factors.
- The survey included diverse participants, representing various asset classes, investment approaches, and time horizons.
About the Survey
The PwC 2024 Global Investor Survey, conducted in September 2024, involved 345 investors and analysts across 24 regions. Participants included institutional investors such as portfolio managers (21%), analysts (21%), and chief investment officers (23%).
About PwC
PwC is a global network of firms committed to building societal trust and solving important problems. With over 364,000 employees in 151 countries, PwC provides assurance, tax, and advisory services. For more facts, visit www.pwc.at.
The term PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.
Learn more about the study at: pwc.at/investor-survey
AI, Resilience, and ESG: Investors’ Top Priorities in 2025 – Expert Interview
Time.news Editor: Welcome, everyone, to today’s deep dive into the latest investment trends shaping 2025. Recent PwC Global Investor Surveys reveal a fascinating shift in investor priorities, focusing heavily on artificial intelligence, resilience, and ESG transparency. To help us unpack these findings, we have Dr. Vivian Holloway, a leading expert in financial analysis and investment strategy. Dr. Holloway,thank you for joining us.
Dr. Vivian holloway: It’s my pleasure to be here.
Time.news Editor: Let’s start with AI. The surveys highlight a strong belief among investors that AI will drive economic growth and job creation. Is this optimism justified, and where do you see the biggest opportunities for AI in boosting productivity & revenue?
Dr.Vivian Holloway: The optimism is certainly warranted,though tempered with the need for strategic implementation. The surveys rightly point out that over half of investors believe AI will fuel economic growth this year. The biggest opportunities lie in automating repetitive tasks across industries. Such as, in manufacturing, AI can optimize production lines and predict equipment failures. In finance, AI powered chatbots can handle client queries, freeing up human advisors. furthermore, AI algorithms can analyze massive datasets to identify investment opportunities and risks. These gains can significantly boost productivity, revenue, and profitability, as the surveys suggest. Specifically, opportunities can be sought through AI use in companies which require productivity, AI implementation, revenue growth, and/or higher profitability.
keyword: Artificial Intelligence,Productivity,Revenue,Profitability
Time.news Editor: The surveys also touched on the fear of job displacement due to AI.Investors seem less concerned than the general public. Why is that?
Dr. Vivian Holloway: Investors are focused on the bigger picture. They see AI as a tool for business transformation, redesigning companies, not just replacing workers. Many expect AI to augment human capabilities, creating new roles that require AI-related and specific training. The 32% anticipating a 5% increase in employment understand that AI implementation necessitates skilled professionals to manage, maintain, and develop AI systems. The jobs are evolving,not vanishing. The question becomes how quickly can firms and individuals adapt to this new paradigm. Additionally, this would require workers to become more flexible in their skillsets and education with the addition of AI requirements.
Keyword: Job Creation,AI Implementation,Business transformation
Time.news Editor: The importance of employee training and upskilling to effectively utilize AI was mentioned? What practical advice can you offer companies looking to prepare its workforce for AI adoption?
Dr. Vivian Holloway: Training is paramount to maximize the effectiveness of technological advancements. I’d recommend a multi-pronged approach. First, invest in internal training programs focusing on the fundamentals of AI and its applications within your specific industry.second,create partnerships with universities and colleges to offer specialized AI courses for your employees. encourage employees to pursue online certifications and MOOCs (Massive Open Online Courses) related to AI. The goal is to equip your workforce with the skills to not only use AI tools but also to understand their underlying principles and potential limitations.
Keyword: Employee Training, AI Implementation, Upskilling
Time.news Editor: Shifting gears, resilience and adaptability are key investment criteria. Why are investors prioritizing these qualities now?
Dr. Vivian holloway: The past few years have taught us the importance of resilience. Geopolitical instability, supply chain disruptions, and unforeseen events require companies to demonstrate adaptability. Investors are looking for businesses with strong crisis management plans, diversified supply chains, and flexible business models. This aligns with 86% of investors surveyed emphasizing the significance of a management strategy. Ultimately, such companies are better positioned to navigate uncertainty and deliver long-term returns.
Keyword: Resilience, Crisis Management, Supply Chain Disruptions
Time.news Editor: ESG factors and sustainability are gaining prominence. Investors are demanding greater transparency and holding companies accountable for their environmental impact. How can organizations improve their ESG reporting to meet these expectations?
Dr. Vivian Holloway: Transparency is the foundation of trust. Companies must provide clear, consistent, and comparable ESG data in their reporting. They should align their reporting with recognized frameworks, and get 73% of investors are calling for sustainability guidelines. ESG certifications are crucial for this.This also means that companies now have to begin to see ESG practices as part of their company and develop goals, a vision, and practices based around ESG. And more importantly, they need to ensure that the practices that the company has developed are actually in the company’s best interests.
Keyword: ESG Reporting, Transparency, Sustainability, Climate Action
Time.news Editor: dr. Holloway, this has been incredibly insightful. Thank you for sharing your expertise with our readers.
Dr. Vivian Holloway: Thank you for having me.
