7 June 2025: KPMG International has released its latest flagship study, “The Intelligent Tech Enterprise: A Blueprint for Creating Value Through AI-Driven Transformation,” revealing that while 88% of tech leaders believe AI adoption is key to competitive advantage, only 47% are currently seeing significant ROI from their investments.
The report, based on insights from 1,390 global executives which included 183 respondents from the technology sector. These leaders shared their experiences and perspectives on overcoming barriers to AI adoption, from dismantling legacy systems to addressing organizational inertia. We also tapped into our own experiences from helping KPMG clients on more than 500 AI engagements that outlined a clear, three-phase blueprint for technology companies to realize meaningful value from AI in three phases: Enable, Embed, and Evolve.
Sharing his views, Purushothaman KG, Partner and Head Technology Transformation, KPMG in India said “India’s tech ecosystem is uniquely positioned to leapfrog into the intelligent enterprise era, with 81% of technology firms planning to systematically integrate AI into their products and services within the next 12 months. The strategic integration of AI can redefine our global competitiveness, as 63% of enterprises are set to increase AI spending by more than 10% in the coming year. However, realizing AI’s full value requires a concerted effort—underscoring the importance of robust governance frameworks, talent development, and embedding AI into core business operations. Organizations that proactively embrace these imperatives will not only drive innovation but also set new benchmarks in delivering value and efficiency.”
Here are the key highlights
- Technology companies face the biggest opportunities and threats from AI, with many playing a pivotal dual role, as users of AI and providers of AI to all other sectors. They now hold the pole position in the race towards an intelligent enterprise and set the pace for others to follow, but risk obsolescence at every turn.
- AI also threatens their current business models as software development costs plummet, AI-native startups emerge and agents make it possible to deliver “service- as-software” (new SaaS)
- Technology executives need to solve at least three AI challenges in parallel. First, they must master the use of available AI tools to boost productivity in their own organisation. Next, they need to embed AI into their products and services faster and better than their competitors. Finally, executives must prepare to adapt their business model to a world where all their customers and suppliers have adopted AI, while considering the role that agents will play in the near future
- 88% believe that technology companies that embrace AI will develop a competitive edge over those who do not
- 85% will increase the percentage of global budget spent on AI
- 68% expect a moderate to very high ROI from AI investments of 10% or more
- 63% are aiming to increase AI investments by more than 10% in the coming year
- 60% are seeking to improve efficiency
- 51% of technology companies are systematically incorporating AI into products and services enabling continuous innovation, tailored solutions and market differentiation, with 81% planning to do so in the next 12 months, signaling a strong commitment to embedded AI as a core driver of business value. This is the opposite of most other sectors where the focus is largely on improving efficiency
- Top 5 GenAI opportunities for technology firms:
- Performance optimization
- Customer relationship management
- Operations execution
- Code generation
- Supply chain resource allocation
- Data governance
- Intelligent analytics
- Supply chain optimization
- Quality assurance
- Digital assistants & automation
The report suggests five key actions for AI success:
- Architect a coherent, AI-centric vision and strategy
- Build trust and ethical AI frameworks
- Supercharge AI product intelligence
- Scale AI operations with next-gen infrastructure and data
- Evangelize AI internally to power workstream transformation