Larger companies lead in AI ROI as firms shift spending to scalable digital strategies
Private companies are accelerating investment in artificial intelligence and digital transformation, signaling a growing focus on measurable returns and operational performance, according to a new survey.
For investors, the shift marks a transition from early-stage experimentation to execution, with clearer implications for profitability, scalability, and long-term value creation.
The Deloitte survey shows that 71% of private company leaders are prioritizing revenue growth over the next 12 months, while 62% are focused on boosting productivity; two areas where AI deployment is increasingly expected to deliver tangible results. More than half (52%) now rank expanding AI use across their organizations as a top-three priority, more than doubling from the previous year.
Nearly two-thirds (63%) of respondents said their firms are actively investing in digital transformation initiatives, including AI, compared with just 33% that remain in limited or pilot phases. This suggests a broader move toward scaling technologies that can enhance margins and streamline operations.
The data points to a widening gap between larger and smaller firms—an important consideration for investors evaluating private market opportunities. Among companies with at least $500 million in annual revenue, 64% reported moderate to significant returns on AI investments. That compares with only 11% of smaller firms, indicating that scale and resources are critical to realizing value.
Larger organizations are also further along in implementation, with 74% already scaling AI across select functions, versus 38% of smaller counterparts. This acceleration may translate into competitive advantages in efficiency, speed to market, and decision-making.
Impact on balance sheets
Funding strategies underscore a disciplined approach to capital allocation. Rather than relying heavily on external financing, 63% of companies are reprioritizing internal budgets to support AI and digital initiatives, while 43% are tapping existing operating capital. For investors, this signals a focus on self-funded growth and potentially lower balance sheet risk.
Returns are expected to be concentrated in core operational areas. An overwhelming 93% of respondents anticipate the greatest impact from digital investments will be seen in workforce productivity and operational efficiency—key drivers of margin expansion.
However, execution risks remain. Data quality and availability issues were cited by 72% of leaders as the primary barrier to maximizing returns, followed by gaps in AI expertise or leadership (53%), integration challenges with legacy systems (48%), and difficulty scaling beyond pilot programs (48%). These constraints could influence the pace and consistency of returns across portfolios.
Governance dynamics also present a mixed picture. While boards are actively engaged in overseeing technology investments (70%), cybersecurity (67%), and data governance (64%), fewer are focused on ethical considerations (25%) or leadership readiness for AI transformation (22%). This may create oversight gaps that investors will need to monitor.
“Private companies are moving beyond AI experimentation and investing in it to drive growth, improve productivity, and make faster decisions,” said Wolfe Tone, vice chair and US Deloitte Private leader. “Many are starting to see returns, and continuing the momentum will depend on how they integrate AI across leadership, governance, and the workforce. Private companies have an advantage because they can often move with greater agility and align decisions more quickly, but realizing the full value of AI will depend on how effectively they translate that agility into disciplined execution at scale.”
