Investments in artificial intelligence (AI) are poised to remain strong through 2025, with the majority of senior business leaders expressing optimism about returns on their AI expenditures, according to the latest EY AI Pulse Survey. However, the report also underscores significant challenges that could hinder broader adoption, particularly around infrastructure, workforce readiness, and sustainability.
The survey, conducted by Ernst & Young, gathered insights from 500 senior business leaders across industries, revealing that 97% of organizations investing in AI report positive returns on investment (ROI). This enthusiasm is reflected in planned spending, with 34% of surveyed organizations intending to allocate $10 million or more to AI initiatives in the next year, up from 30% in the previous survey conducted six months earlier.
Despite these gains, EY’s findings highlight concerns that could temper this momentum. Challenges with data infrastructure, responsible AI practices, and the energy demands of AI technologies are becoming increasingly evident. These issues point to a complex environment for businesses navigating AI integration.
Steady ROI, but Data Infrastructure Falls Short
Organizations dedicating at least 5% of their budgets to AI are experiencing significant ROI, with improvements noted in operational efficiency (84%), employee productivity (83%), and product innovation (78%) compared to six months ago. Yet, data infrastructure is emerging as a key barrier to broader adoption. Over 80% of respondents indicated that stronger data systems would accelerate their AI initiatives, and 67% acknowledged that their current limitations are actively hindering progress.
“Data infrastructure and management are fundamental for leveraging AI’s potential,” said Dan Diasio, EY Global Artificial Intelligence Consulting Leader. “Organizations must prioritize capturing and organizing their unique knowledge assets to stay competitive as AI models evolve.”
Responsible AI and Workforce Challenges
Concerns around AI governance and workforce adaptation are growing. According to the survey, 61% of respondents report increased interest in responsible AI practices, up from 53% earlier this year. Concurrently, there is a push for greater employee training, with 59% of organizations planning to enhance their efforts in educating staff on AI’s responsible use.
However, enthusiasm for AI adoption is waning within organizations. Half of the surveyed leaders noted a decline in company-wide excitement for AI, and 54% admitted feeling overwhelmed by the rapid pace of AI advancements. These findings point to the need for more robust leadership and employee engagement strategies to maintain alignment with AI’s evolving demands.
Energy Consumption Sparks Concerns
The environmental impact of AI is another area of focus. Nearly half of the respondents expect increased energy consumption due to AI usage in the next year, with many raising concerns about costs, emissions, and energy reliability. This challenge underscores the tension between technological advancement and sustainability goals.
“Scaling AI will require innovative approaches to energy efficiency,” said Steve Wanner, EY Americas Industrials & Energy Leader. “Collaboration across industries is essential to balance growth with environmental responsibility.”
AI Impact on Marketing
For marketing professionals, these findings emphasize the dual opportunities and risks associated with AI. The potential for improved efficiency, creativity, and customer engagement is evident, yet marketers must also navigate the challenges of responsible implementation and sustainability. With AI reshaping consumer expectations and operational processes, addressing infrastructure and governance concerns will be critical to harnessing its benefits effectively.
As businesses continue to deepen their reliance on AI, the findings signal that success will hinge on more than just investment. Addressing systemic challenges, from data readiness to energy consumption, will be crucial for sustaining growth and innovation in the years ahead.