UK investors see GenAI as key to growth but prioritize workforce upskilling, PwC survey finds

Investors in the UK anticipate strong returns from the deployment of GenAI but expect companies to balance automation with workforce investment, according to PwC’s latest UK Investor Survey.

The survey, which gathered responses from more than 100 investors and analysts covering UK businesses, highlights optimism regarding GenAI’s potential for efficiency and revenue growth.

The findings indicate that 74% of UK investors believe GenAI will improve productivity in the companies they support, surpassing the global average of 66%. Additionally, 58% expect revenue growth from GenAI implementation, while 60% foresee increased profitability. These figures are slightly below global expectations of 63% and 62%, respectively.

Beyond financial gains, investors see value in AI’s ability to scale businesses (61%), measure return on investment (42%), influence stakeholder perception (43%), and enhance workforce capabilities (43%).

Workforce upskilling considered more important than AI deployment

Despite strong backing for AI adoption, 77% of investors believe that upskilling employees is the most critical step businesses should take, exceeding the 72% who prioritize AI deployment at scale. The findings reflect investor expectations that GenAI implementation should not come at the expense of workforce development.

Albertha Charles, Asset & Wealth Management Leader at 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."

Economic optimism and business model adaptation

The survey reveals that 53% of UK investors expect global economic growth over the next year, slightly above the global average of 51%. PwC’s recent CEO Survey also found that 61% of UK business leaders anticipate economic growth in 2025, exceeding the global figure of 58%.

Investor pressure for business model transformation is increasing, with technological change ranked as the top concern by 80% of respondents. Supply chain instability (66%) and government regulation (63%) follow as key areas of focus. This comes ahead of the UK government’s Financial Services Growth and Competitiveness Strategy, which aims to foster innovation and strengthen the UK’s position as a global financial hub.

Darren Ketteringham, Financial Services Leader at PwC UK, said:

"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."

Macroeconomic and ESG considerations in investment decisions

Macroeconomic volatility (39%), geopolitical conflict (35%), and cyber risks (34%) rank as the most significant threats to UK businesses, according to investors surveyed. Seven in ten investors expect companies to enhance resilience against future global crises.

Climate change and social inequality are seen as lower priorities than in previous years. The proportion of investors concerned about climate change fell from 36% in 2024 to 27%, while those citing social inequality dropped from 44% to 21%. However, sustainability remains a factor in investment decisions, with 74% of investors stating they would increase investment in companies focused on sustainable supply chains and climate mitigation solutions.

When assessing net-zero transition plans, 91% of investors consider capital and operating expenditures an important factor, while 89% prioritize governance structures, and 75% look for a clear road map to achieve net zero.

Sustainability reporting remains a key issue, with 41% of investors believing that corporate sustainability disclosures contain unsupported claims. Additionally, 72% support holding sustainability reporting to the same level of assurance as financial reporting.

Investors are also expanding their evaluation criteria beyond financial statements, with 48% considering management competence, 47% examining corporate governance, and 42% looking at innovation. Materiality assessment disclosures (60%) and investor-focused communications (59%) are considered as important as traditional financial reporting (59%), slightly ahead of direct dialogue with company leadership (53%).