As companies adapt to technological advancements, artificial intelligence (AI) is playing a growing role in driving business innovation and profitability, research from HLB International has shown.
Namely, 69 per cent of business leaders globally now see AI as the most important technology over the next five years, up from 65 per cent last year.
In addition, as many as 71 per cent of leaders are focusing on AI for predictive analytics to track future trends, while more than half (55 per cent) are using these capabilities to improve business agility.
Kapil Kukreja, partner with HLB Mann Judd Melbourne, noted that business leaders increasingly see AI not only as a tool for improving business efficiency and profitability but as an instrument for bolstering the capacity and training of their workforces.
“Business leaders have recognised the need to adapt, with quick action often needed,” Kukreja said.
“Technological advances, such as the doubling of computer processing power every four years, are accelerating innovation cycles. Many leaders have refined their approach, transitioning from broad experimentation with technology to targeted strategies aimed at enhancing the performance of their workforces, analytics, and, ultimately, profitability.”
This year’s survey also revealed that “profit accelerators”, or high-performing organisations, are overcoming challenging market conditions by focusing on three key levers of profitability: operational efficiency, innovation and talent management.
In fact, Kukreja pointed out that more than two-fifths (44 per cent) of these “profit accelerators” are ahead on the AI maturity curve.
“Profitability is essential for the growth and sustainability of any enterprise, particularly given the current market conditions that are demanding greater agility. AI is increasingly used as part of business strategy,” he said.
Looking at operational efficiency, 65 per cent of these high-performing companies are considering large-scale operational transformations, such as modernising or adopting new technology systems (61 per cent) and streamlining processes (46 per cent).
According to Kukreja, investment in people remains a key priority, with 55 per cent of profit accelerators focusing on learning and development to improve the effectiveness of their workforce.
“Nearly half of profit accelerators report having a high-performing and engaged workforce,” he added.
Similarly, business leaders flagged cultural transformation as important for progress. The research found that profitable businesses are particularly intentional about fostering a culture of innovation and collaboration, in addition to leveraging AI and data analytics to understand market trends and customer behaviour.
“These actions create fertile ground for sustained profit and growth. In this year’s research, a shift in focus is evident: profitability takes centre stage over high growth rates,” Kukreja said.
“In terms of using AI in the workforce, these include AI-driven training programs, streamlined recruitment processes, and predictive workforce analytics that support better decision-making across teams.”
Within HLB’s latest business survey, which gathered insights from over 1,200 leaders across 50-plus countries, it was revealed that the most profitable companies – those with profit growth of 5 per cent to 10 per cent or more – stood out for their agility and technology focus.
Among these companies, 37 per cent consider their operating model optimal, compared to less than 15 per cent of their peers.
“Over the past decade, agile organisations with empowered teams have consistently outperformed their peers, demonstrating a unique ability to pivot quickly and capitalise on emerging opportunities,” Kukreja said.
