UK Investor Survey

Investors back bold moves as businesses face pressure to reinvent

Investors are cautiously optimistic about the global economy, but they are under no illusions – the complex set of challenges ahead will require companies to take bold and decisive action. PwC’s UK Investor Survey, which draws on insights from over 100 investors, reveals businesses must demonstrate how they’re reinventing their business models, scaling emerging technologies and upskilling their workforce, all while managing the climate transition and building trust.

53%

expect the economy to improve over the next 12 months
80%

say technological change is compelling companies to change the way they create value
74%

believe GenAI will increase productivity in the companies they invest in or cover
77%

agree that companies should embed ESG and sustainability directly into their corporate strategy

Predicting growth despite challenges

Investor sentiment towards economic growth is largely positive, with over half expecting the global economy to improve over the next 12 months compared with less than a third predicting a decline. But investors are not overlooking the challenges that could impact businesses' ability to thrive in the coming year.

Around a third believe organisations will be highly or extremely exposed to a range of external pressures, including macroeconomic volatility (39%), geopolitical conflict (35%), cyber threats (34%) and climate risks (27%), as well as operational issues such as technological disruption (32%) and lower availability of skilled workers (29%).

The breadth of challenges ahead means businesses must remain resilient and agile, ensuring they proactively manage risks as they arise and communicate to investors how they plan to respond.

The urgent need for reinvention

Investors expect the companies they invest in, or cover, to reinvent their business models in response to emerging trends. They view technological change as the most critical factor driving businesses to change the way they create, deliver and capture value (80%), but this is closely followed by addressing supply chain instability (66%), government regulations (63%) and changes in customer preference (60%).

This comes as PwC’s UK CEO Survey reveals 34% of CEOs believe their business won't be economically viable within 10 years on its current course.

To achieve this reinvention, businesses must act boldly – deploying emerging technology at speed and scale, and building a workforce primed to make sure it succeeds.

Where should companies be taking more action?

^{Question: To what extent should the companies that you invest in or cover increase or decrease their actions to address the following?

Source: PwC's UK Investor Survey 2024. The data in this report is based on the 107 respondents who invest in or cover companies in the UK.}

Upskilling is key to maximising Generative AI’s potential

Investors have high expectations for the transformative potential of Generative AI (GenAI), with over half predicting increased profitability (60%) and revenue growth (58%) for the companies they invest in or cover.

Where will GenAI have most impact on companies?

^{Question: To what extent do you believe that Generative AI will increase or decrease the following in the companies that you invest in or cover in the next 12 months?

Source: PwC's UK Investor Survey 2024. The data in this report is based on the 107 respondents who invest in or cover companies in the UK.}

However, a quarter of UK CEOs say they currently struggle to get emerging technology projects beyond proof of concept, with 47% citing skills gaps as the main barrier to adoption. To succeed, businesses must treat workforce and technology transformation as a connected challenge — building not just skills, but the culture and behaviours needed for tech-powered success. And investors agree, with 77% stating that the companies they invest in, or cover, should increase workforce upskilling.

“GenAI has been a game changer for businesses worldwide, but investors now expect it to deliver real, measurable value. They understand that success isn’t just about technology — it requires investment in people and new ways of working. As AI adoption accelerates, investors will be watching closely to see how leaders balance technology with upskilling their workforce to unlock meaningful gains in profit and productivity.”

_{Albertha Charles

Asset & Wealth Management Leader, PwC UK}

Investors favour climate-conscious businesses

A strong majority of investors (77%) agree that companies should embed ESG and sustainability directly into their corporate strategy, and 74% say they would consider increasing investments in firms that are taking climate-related actions – such as working with suppliers and communities to build sustainable supply chains or launching products designed to mitigate climate change.

74%

of UK investors would consider increasing investments in firms taking climate-related actions

Despite this enthusiasm, some investors express concerns about transparency. Around four in ten (41%) investors agree that, to a large or very large extent, corporate reporting about a company’s sustainability performance contains unsupported claims. And most investors (73%) agree that sustainability reporting should be assured at the same level as financial reporting.

As mandatory climate-related disclosure requirements, such as the Corporate Sustainability Reporting Directive (CSRD), continue to evolve, there is a clear opportunity for businesses to build trust through their communication with investors and the market.

“Businesses and investors alike recognise that sustainability is a key driver of growth, innovation and value, but the regulatory landscape is complex and there is a clear demand for transparency. Companies that prioritise robust and transparent reporting practices and effectively communicate their environmental impact are far more likely to build investor confidence.”

_{Carl Sizer

Chief Markets Officer, PwC UK}

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In September 2024, PwC surveyed 345 investors and analysts across 24 countries and territories, and conducted in-depth interviews with 14 investment professionals. The data in this report is based on the 107 respondents who invest in or cover companies in the UK.