Chief executives across the world are worried about the longevity of their businesses due to pressures from generative AI and climate change, according to a PwC survey carried out before the World Economic Forum in Davos, Switzerland. The survey, which was published before the week-long conference kicked off on 15th January, revealed that almost half […]

Chief executives across the world are worried about the longevity of their businesses due to pressures from generative AI and climate change, according to a PwC survey carried out before the World Economic Forum in Davos, Switzerland.

The survey, which was published before the week-long conference kicked off on 15th January, revealed that almost half (45%) of the 4,500 global CEOs surveyed believe their businesses will not survive in the next decade.

While this might seem gloomy, expectation of economic decline has fallen among business leaders from the record high of 73% last year.

And despite ongoing conflicts in Ukraine and the Middle East, including disruptions in global trade from attacks on ships in the Red Sea, the proportion of CEOs who felt their company was highly or extremely exposed to geopolitical conflict fell by 7 percentage points this year to 18%.

It could be that a little fear is no bad thing: CEOs that are concerned about the future of their business appear to be taking more measures to adapt than others, the report finds.

This was particularly true among those forming new strategic partnerships, shifting global supply chains to regional, or implanting novel pricing models.

Nearly 75% of CEOs questioned thought that generative AI would significantly change their business in the next three years. They were equally optimistic about the shorter-term benefits.

Over the next 12 months almost 60% expect it to improve the quality of their products or services while almost half say it would enhance their ability to build trust with stakeholders.

Introducing such technologies would, however, require training in new skills for employees, according to almost 70% of respondents. Over sixty per cent of respondents also predicted associated cyber security risks.

The report found that CEOs were also making environment strides, with two thirds claiming that efforts were underway to improve energy efficiency.

“This year’s data suggests a high degree of CEO uncertainty ahead, but CEOs are taking action. They are transforming their business models, investing in technology and their people, and managing the risks and opportunities presented by the climate transition,” said Bob Moritz, Global Chair, PwC.

 

CTOs fear rising budgets, recruitment issues, cyber security and AI

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