PwC: Why Energy CEOs Must Reinvent for the AI Era

The energy sector stands at an inflection point as technological disruption and climate imperatives converge to change business models that have dominated for decades. 

It’s no longer a question of whether to change, but how quickly companies can adapt before they’re left behind.

PwC’s 28th Annual Global CEO Survey reveals a sobering statistic: 40% of energy, utilities and resources sector leaders believe their companies would be unviable within 10 years if they continued on their current path.

That’s not a minor concern – it’s four in 10 executives looking at their organisations and seeing an expiration date.

The professional services firm, which provides consulting and auditing services to corporations globally, finds that the sector is being reshaped by AI adoption, sustainability requirements and geopolitical tensions.

These forces are redefining how value is created, yet the survey reveals a stark divide between leaders capitalising on Gen AI and the low-carbon transition and those still constrained by legacy processes and outdated thinking.

Maxim Vykhovanets, Country Managing Partner and Energy, Utilities & Resources Leader at PwC in Ukraine, says: “The need for reinvention will be intensified by emerging challenges which, alongside risks, also bring new benefits and opportunities.”

He points to technology as a catalyst for productivity gains that energy companies desperately need.

“These can significantly enhance productivity through automation, AI, 3D printing and other disruptive technologies,” Maxim adds.

“Further opportunities lie in improving sustainability and circularity in response to climate change.”

How Gen AI delivers results beyond the hype

Expectations for Gen AI remain high among global business leaders and unlike many technology trends. 

One-third of CEOs report that Gen AI has already increased revenue and profitability over the past year. 

The survey shows 56% of CEOs say Gen AI has improved how employees use their time, while 32% report increased revenue and 34% cite improved profitability. 

These outcomes fall slightly short of last year’s bullish expectations, though 49% of CEOs still expect Gen AI to increase profitability over the next 12 months – suggesting optimism remains resilient even as reality sets in.

Workforce impacts also tell an interesting story. 

While 13% of CEOs report reduced headcount linked to Gen AI, 17% say their workforce has actually grown as a result of these investments. 

Looking forward, nearly half of CEOs identify integrating AI into technology platforms and workflows as a top priority over the next three years. 

Yet only one-third plan to embed AI into workforce and skills strategies, revealing a gap between technological ambition and human capital planning that could prove problematic.

How climate action proves financially smart

For companies in the energy, utilities and resources sector, climate action is proving to be beneficial for business. 

The survey finds 17% of EUR companies report reduced costs from climate-friendly investments, while 37% have seen increased revenues. 

Across industries, PwC finds these investments were six times more likely to boost revenue than to reduce it, turning the conventional wisdom about sustainability costs on its head.

The financial outcomes vary dramatically by geography. 

Roughly half of CEOs in Germany and France report higher costs from climate-friendly investments, compared with only one-fifth in the US.

By contrast, CEOs in Mainland China are far more likely to see additional revenues, with 60% reporting revenue increases and 46% receiving government incentives that clearly tilt the playing field.

Investor sentiment supports this direction, with nearly 70% believing companies should invest in sustainability even at the expense of short-term profits. 

This alignment between investor expectations and CEO strategy suggests that sustainability investments are becoming embedded in corporate financial planning rather than being treated as optional extras.

PwC’s data shows a direct link between the extent of reinvention and stronger profit margins. Companies willing to rethink business models and embrace AI are better positioned for future performance. 

The survey suggests that while most leaders have taken some action to reshape how they create value, few have made the deeper shifts that drive lasting transformation – the kind that separates survivors from casualties.

Maxim says opportunities extend beyond immediate technological gains: “Further opportunities lie in improving sustainability and circularity in response to climate change.”