Impact of AI investment on performance and labor dynamics

The following is an extract from S&P Global Market Intelligence's latest special report. For the full report, please click on the 'Download Full Report' link.

The latest PMI® survey on AI investment reveals an upward trend in the adoption of artificial intelligence across various sectors and countries, as businesses recognize the transformative potential of AI technologies in enhancing operational efficiency and driving innovation. Following our inaugural survey in 2024, this year’s findings indicate that the proportion of firms investing in AI has risen across all monitored nations and sectors, with many companies expressing intentions to further increase their investments in 2026.

The data illustrate a consistent narrative across company sizes, with small, medium and large enterprises all reporting increases in past and planned investment in AI. Notably, Northern European countries, including Germany, Austria the UK and the Netherlands, remained the leaders in AI investment, both in the past year and with plans for the next 12 months.

This trend may reflect differing maturity levels in AI adoption; for example, firms in mainland China and the US have made significant early investments, leading to a relatively smaller proportion planning further investment next year. In contrast, Europe’s regulatory environment is encouraging greater AI investment and broader adoption among small and medium-sized enterprises. While the US and mainland China remain leaders in scale and innovation, Europe excels in the democratization and ethical integration of AI technologies, bolstered by supportive policies and funding.

In addition to quantitative findings, the report includes insightful case studies that highlight the diverse applications of AI across different business sizes. Small firms are primarily leveraging AI to enhance manual processes, such as bookkeeping, documentation preparation and market research, often utilizing existing conversational models. Conversely, larger companies are developing bespoke AI systems aimed at optimizing staff recruitment, customer acquisition, automation and price analysis.

When it comes to workforce upskilling, small firms typically focus on internal training and workshops, often developing skills in-house rather than incorporating AI expertise into their hiring plans. In contrast, larger organizations are establishing dedicated teams to oversee AI implementation and training, with initiatives that include the creation of AI agents who are trained externally and subsequently educate their colleagues. Additionally, large firms are actively recruiting staff with expertise in managing AI initiatives, including developers and IT professionals with skills in data processing tools like Power BI and programming languages such as Python.

As organizations continue to navigate the complexities of digital transformation, these insights offer valuable guidance for business leaders and policymakers. By recognizing the diverse advantages associated with AI investment, stakeholders can make strategic choices that promote sustainable growth and stimulate economic progress.