EY Report Shows Tech Firms Face AI Investment Pressures
EY, the global professional services firm, has published research indicating technology companies face mounting pressure to demonstrate returns from AI investments as they enter 2025.
The report, which examines AI implementation across global markets, reveals companies are developing frameworks to measure both financial and operational impacts of AI solutions, particularly in autonomous systems and generative AI - machine learning models that can create content based on training data.
EY Global and Americas Technology Sector Leader James W. Brundage says: "2025 will be a pivotal year for the tech industry to demonstrate AI ROI to both customers and shareholders, requiring effective communication of value drivers and demonstrating the operational efficiencies achieved."
Google PaLM 2 shows enterprise AI implementation challenges
The research points to Google's implementation of PaLM 2, a large language model system, in customer service operations as an example of autonomous AI deployment. The system processes customer queries and provides responses without human intervention, representing a shift towards what industry terms 'agentic AI' - autonomous systems that can make decisions independently.
EY Americas Consulting Technology Sector Leader Geoff Vickrey says: "Agentic AI will rapidly become commonplace as customers across industries race to deploy preconfigured process solutions."
The report indicates companies implementing such systems face challenges in measuring success metrics and justifying investment costs.
EY Americas Strategy and Transactions Technology Sector Leader Barak Ravid warns: "Companies that stick with traditional subscription models risk losing to competitors that better align price to value received by consumers."
AI security implementation drives enterprise technology changes
The research references EY's 2024 Global Cybersecurity Leadership Insights Study, which documents efficiency improvements in cybersecurity teams using AI systems. These implementations include automated threat detection and response mechanisms, though the report notes such tools could be exploited by malicious actors.
Companies are advised to establish data governance frameworks - systems for managing data quality and security - to support AI initiatives. This includes evaluating cloud computing investments and considering on-premises solutions for real-time analysis.
EY Americas AI and Data Leader Traci Gusher says: "Leaders must resist the impulse to fit Gen AI into today's processes and business models instead of reimagining them entirely."
The report examines regulatory developments across the European Union, United States and Asia-Pacific regions, noting increasing government scrutiny of AI deployments.
EY Americas Vice Chair – Public Policy Bridget Neill says: "Regulating AI innovation is being contemplated at all levels of government today, and the Washington debate is getting louder. Tech leaders who want to shape the future of this sector are already engaging with Washington policymakers on this important and dynamic issue."
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