BCGAIRADARFromPotentialtoPro?t:ClosingtheAIImpactGapJANUARY2025SURVEYMETHODOLOGYGlobalresearchof1,803C-levelexecutivesonAIin2025ExecutiverolesCompanyrevenueMarketsIndustriesandkeyfunctionsTMTUS21420019818217132314%5%14%IndiaFinancialinstitutionsConsumer/retail256250GermanyUKFrance31%Italy102101Healthcare/medicalTransportation/travel/tourismEnergy192145144142110110CEO30%SingaporeBrazilCSO<$500M8782CxOCTOCIO1$500M–<$1B17%16%Japan$1B–<$2B$2B–<$5B>$5BUAE81798%ManufacturingIndustrialgoodsPublicsectorInsuranceCDO2Spain9%7%C-suite3NigeriaIndonesiaAustraliaSaudiArabiaGreaterChinaSouthAfricaMoroccoQatar65644645494141382822%27%Marketing12Realestate8Source:BCGAIRadar2025SurveyNote:Revenuethresholdsforsurveyinclusion:$500+millionUSD(US,Europe,Japan,Australia);$100+millionUSD(restofAPAC,MiddleEast,Africa).SurveyconductedSeptembertoDecember2024.1CxOrepresentsotherexecutiveswhodirectlyreporttotheCEO(e.g.,CMO,CFO,COO,etc.).2IncludesCDOandCAIO.3C-suiteincludesEVP,SVP,VP,Chairman,President.WhereisthevalueinAI?GenAIinvestmentsareprojectedtoincreaseby60%inthenext3years+60%AIambitionsaregrowingalongsideinvestments+30%202320242027Source:BCGITSpendSurvey2024.Oneinthreecompaniesacrossallmarketsareplanningtospend$??million+onAIin????HowmuchareyouplanningtoinvestinAIin2025?JapanUS53%59%63%65%69%69%71%26%10%9%11%9%23%SingaporeUK25%18%17%18%15%6%10%6%6%7%8%4%6%6%8%FranceGermanyIndiaUpto$25M$26M–$50M$51M–$100M>$100M9%8%UAE78%81%83%86%15%1%SpainItaly6%5%12%3%2%2%BrazilGlobal12%7%69%18%6%OneinthreecompaniesSource:BCGAIRadar2025Survey(n=1,803).…but,only75%

25%ofexecutivesrankAI/GenAIasatopthreestrategicpriority…ofexecutivesareseeingsigni?cantvaluefromAISource:BCGRadar2025Survery(n=1,803).Whatareleadingcompaniesdoingdi?erently?DeployAIineverydaytaskstorealize10%to20%productivitypotentialThreevalueplaystomaximizeAIpotentialReshapecriticalfunctionsfor30%to50%enhancementine?ciencyande?ectivenessInventnewproductsandservicestobuildlong-termcompetitiveadvantageSource:BCGanalysis.Theyfocus+80%oftheirAIinvestmentsinreshapingcriticalfunctionsandinventingnewproductsandservicesLeading18%companiesgowellbeyonddeploy…DeployIndividual-productivityfocused40%ReshapeProcess-levelproductivityaimedatreshapingcriticalfunctionsInventCompany-levelinnovationcoretothebusiness42%+80%Source:BCGBuildfortheFuture2024GlobalStudy(mergedwithDigitalAccelerationIndex),(n=1,000).ShareofAIinvestmentsinDeploy,Reshape,andInventinitiatives…butmostcompaniesaren’tyetprioritizinginvestmentsinhigher-impactplays27%DeployIndividual-productivityfocused44%ReshapeProcess-levelproductivityaimedatreshapingcriticalfunctions56%InventCompany-levelinnovationcoretothebusiness29%Source:BCGAIRadar2025Survey(n=1,803).LeadingcompaniesextractgreatervaluebyfocusingtheirAIinvestments40%Inreality,most6.1companiesgobroadanddilutee?ortsacrossmultiple2.1x3.5pilots,seeinglowerROIasaresultAIusecasesprioritizedMoreROIforAIanticipatedLeadingcompaniesOthercompaniesSource:BCGBuildfortheFuture2024GlobalStudy(mergedwithDigitalAccelerationIndex),(n=1,000).Yet60%ofcompaniesarefailingtode?neandmonitorany?nancialKPIsrelatedtoAIvaluecreationLeadingcompaniessetcleargoalsandtracktop-andbottom-lineimpactHowisyourorganizationtrackingvaluecreationfromAI?32%28%16%24%60%NottrackingyetOperationalonlyFinancialonlyOperationaland?nancialSource:BCGAIRadar2025Survey(n=1,803).Leadersfollowthe10-20-70principletocreatevalue10%Algorithms…but2in320%Technologycompaniesstruggleto:·Reimaginework?owsanddriveincentives,culture,andchange70%Peopleandprocesses·HireAItalentandupskillworkforceSource:BCGAIRadar2025Survey(n=1,803).Note:AItalentreferstoAIspecialists(i.e.,datascientists,MLopsengineers)andnon–specialists(i.e.,upskilledtalentleveragingAItools).Dataprivacyandsecurity66%AIrisksthatcompaniesmustnavigateLackofcontrolorunderstandingofAIdecisions48%Regulatorychallengesandcompliance44%Source:BCGAIRadar2025Survey(n=1,803).Note:Percentagescorrespondtoshareofexecutivesrankingriskintheirtop3.76%CybersecurityremainscriticalRecognizethattheirAIcybersecuritymeasuresneedfurtherimprovementsSource:BCGAIRadar2025Survey(n=1,803).2025:TheyearofAIagents?WhatanagentisWhatisanagent?Simplyput,it’sanAIthathaslearnedtousetoolsMemoryReasoningSystemsRememberingacrosstasksandchangingstatesDecomposingaproblemandplanningactionsAccessingexternalsystemsonyourbehalfWhatanagentdoesObservesPlansActsCollectandprocessdatafromenvironmentEvaluatepossibleactionsandprioritizetowardagoalExecutebyleveraginginternalorexternaltools/systemsSource:BCGAnalysis67%However,agentsrequiredeepreimaginationofworkandarenotasilverbulletforimpact15%areconsideringautonomousagentsaspartoftheirAItransformationSource:BCGAIRadar2025Survey(n=1,803).OptimismaroundAIagentsisconsistentacrossgeographiesRolethatcompaniesseeforAIagentsmovinginto202574%72%72%71%70%68%67%63%62%61%US37%37%JapanUAE26%46%40%32%SingaporeIndia31%34%40%36%UK27%41%33%FranceGermanySpainBrazilItaly34%30%33%Centralorcomplementaryrole38%24%35%Exploring31%32%30%56%18%38%67%GlobalSource:BCGAIRadar2025Survey(n=1,803).UnlockingnewpotentialtoreshapeprocessesandservicesAgentsdeliverupto3xmoreproductivityandspeedbene?tscomparedtotraditionalassistantsBreakingdownsilosThebiggestopportunityisseamlessenterprisecollaborationthroughzero-touchservices,advancedplanning,andautomatedcustomer360activationAIagents:KeyleadershipprioritiesManagingtherisksofmorecomplexityAIagentsaremorecomplexthanassistants,requiringrobusttestingandoptimizationtomanageoperationalandcyberriskse?ectivelyCuttingthroughthehypeMislabelingandoverhypeof“agents”willdilutetrustandleadtounmetexpectations;leadersmustclarifycapabilitiesandsetrealisticgoalsMovingforwardSuccessliesintargeted,high-impactapplications,focusedonpracticaldesign,seamlessintegration,anddataqualityoverhypeSource:BCGanalysis.WithAIagentsontherise,whowillholdthepower:humansorAI?ExecutivesseetalentandAIascomplementaryHuman-centeredAI-focused14%64%22%Prioritizinghumantalent,usingAIonlywhennecessaryAIandhumansworkingsidebysideAItakingthelead,buthumansretainingoversightSource:BCGAIRadar2025Survey(n=1,803).Howdoyouexpecttheworkforceinyourorganizationtochange?Increaseheadcount,addingnewskillsMoreFTEs8%Lessthan10%ofexecutivesexpectadecreaseinMoreproductivityandupskillingofexistingtalenttomeetAIneedsExistingworkforce68%headcountduetoAIautomationRestructureworkforcewithnewrolestoreplaceredundantones17%7%NetneutralDecreaseheadcountduetoAIautomationFewerFTEsSource:BCGAIRadar2025(n=1,803).~70%ofthecompanieshavetrainedlessthan1in4oftheirworkforceAIupskillingisaccelerating,buttheworkisnotover71%94%Companieswithmorethan25%oftheirworkforcetrainedonAI/GenAItools29%6%20232024Source:BCGAIRadar2025Survey(n=1,803)