Investors expect GenAI outlay to generate returns but not at expense of workforce finds PwC UK Investor Survey

Investors in the UK have high expectations for the impact of Generative AI (GenAI), anticipating productivity gains and financial returns – but they also want to see businesses invest in their workforce alongside technology, according to new research from PwC.

PwC’s latest UK Investor Survey, which polled more than 100 investors and analysts covering UK companies, highlights a clear expectation that companies will leverage GenAI to drive efficiency and growth. Three-quarters (74%) of UK investors believe GenAI will boost productivity in the businesses they back, outpacing the global average of 66%. This has led to financial expectations, with 58% expecting revenue growth from GenAI deployment and 60% anticipating increased profitability – though both are slightly below global sentiment (63% and 62% respectively).

At the same time, investors into the UK are optimistic about the broader economy, with 53% of those investing in the UK expecting global economic growth over the next year, compared to 51% globally. This follows PwC’s recent CEO Survey, which revealed that 61% of UK company bosses expect to see global economic growth this year, ahead of 58% globally. 

Beyond financial returns, investors see the biggest opportunities in AI’s ability to scale businesses (61%), measure return on investment (42%), shape stakeholder perception (43%), and enhance workforce impact (43%). 

However, while the majority of investors into the UK (72%) want to see businesses deploy AI at scale, this is not as important as upskilling the workforce, which was cited by 77% as the most important action companies can take. The message is clear: GenAI must deliver tangible benefits, but businesses need to balance automation with investment in people to sustain long-term success.

Albertha Charles, Asset & Wealth Management Leader, PwC UK, said:

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."

There are also signs of increased pressure on organisations to reinvent their business models in response to eight trends highlighted in the survey. While technological change was deemed important by 80% of respondents, the second most important issue was supply chain instability (66%), followed by government regulation (63%). This comes as the government gets ready to launch its Financial Services Growth and Competitiveness Strategy, which will outline a decade-long plan to foster innovation and solidify the UK’s position as a global financial hub.

Darren Ketteringham, Financial Services Leader, PwC UK, added:

“The government has been clear that there needs to be a shift in the balance between risk and regulation. Creating an environment where the financial services sector is more dynamic, resilient, and competitive, will make the UK more attractive to international investment, and we saw evidence of this in PwC’s recent CEO Survey, which showed the UK is the second most attractive global destination for international investment.”

Climate slips down threat agenda but remains important

The survey also revealed the range of threats perceived to be most likely to impact UK businesses with macroeconomic volatility (cited by 39% of respondents), geopolitical conflict (35%) and cyber risks (34%), being deemed the biggest threats. With investors rating most of these key threats at roughly the same level, businesses need to ensure they are agile and resilient.

Seven in 10 investors said companies they invest in should enhance their resilience to future international crises. With the ongoing macroeconomic risk, more societal-focused risks such as climate change and social inequality are seen as less of a concern, with the former being cited by 27%, down nine points; and the latter just 21%, down from 44% last year. 

More than one-quarter (27%) of investors into the UK said they remained exposed to climate change, though this is down from 36% last year, while the proportion of investors who agreed that companies should embed ESG and sustainability directly into their corporate strategy fell to 77% from 81% last year. 

However, climate-related investments remain an important aspect of investor decisions, with three-quarters (74%) of respondents saying they would look to increase investment in companies are working with suppliers and communities to build sustainable supply chains; or launching products that help mitigate the effects of climate change. 

When assessing companies’ net-zero transition plans, 91% of investors say associated capital or operating expenditures governance is at least moderately important, ahead of governance (89%) and having a road map to achieve net zero (75%).

How progress is reported remains of high importance, however 41% of respondents agreed that to a large or very large extent, corporate reporting about a company’s sustainability performance contains unsupported claims. Most investors (72%) agree that sustainability reporting should be assured at the same level as financial reporting, in line with global counterparts (73%).

The Survey also reveals that investors are increasingly looking at a wide range of data beyond financial information when evaluating businesses. The includes the competence of management (48%), corporate governance (47%), and innovation (42%). Investors rely on a wide range of sources for their information on a business they have invested in, with materiality assessment disclosures (60%) and investor-focused communications (59%) as important as financial statements (59%), just ahead of direct dialogue with the company (53%).