A recent survey of CEOs conducted by PwC, one of the world’s largest consulting firms, reveals a nuanced perspective on the global economic and business landscape.
The survey, encompassing over 4,700 CEOs worldwide, was released during the World Economic Forum’s annual meeting in Davos, Switzerland.
Optimism about the global economy has increased, with 38% of executives expressing positivity, compared to 18% the previous year. The anticipation of economic decline has decreased from 73% to 45%. Despite global challenges, including geopolitical conflicts and disruptions in global trade, CEOs are more sanguine about economic prospects. However, the World Bank predicts a third consecutive year of global economic slowdown in 2024.
In contrast, CEOs are increasingly concerned about the ability of their companies to navigate significant changes. The survey indicates that 45% of respondents worry that their businesses may not be viable in a decade without significant reinvention, up from 39% the previous year. While efforts are being made to drive change, CEOs face obstacles such as regulatory challenges and a lack of skilled workers.
Artificial intelligence (AI) emerges as a double-edged sword in the CEOs’ view. About three-quarters of executives believe that AI will significantly transform how their companies create, deliver, and capture value in the next three years. While over half see AI as enhancing their products or services, 69% recognize the need for worker training to harness AI effectively. Concerns about cybersecurity risks and misinformation linked to AI are also prominent.
The survey indicates that the climate transition represents both an opportunity and a risk for businesses. Nearly a third of CEOs foresee climate change affecting their operations in the next three years. While 75% have initiated or completed measures to enhance energy efficiency, only 45% have made progress in integrating climate risks into financial planning.
In summary, the survey portrays a mixed outlook among CEOs, with increased economic optimism tempered by growing concerns about the need for business reinvention, challenges posed by AI, and the imperative of addressing climate change risks.
