Almost 60% of CEOs around the world are feeling positive about global economic growth over the next 12 months, according to PwC’s 28th Annual Global CEO Survey. This survey, released during the World Economic Forum in Davos, sheds light on how business leaders are preparing for the future.
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AI and Headcount Increases: A Double Win
CEOs aren’t just hopeful—they’re taking action. The survey shows that 42% of CEOs plan to increase their workforce by at least 5% in the coming year. This number is more than double those who expect to reduce their headcount, signaling a strong commitment to growth.
In particular, the technology, real estate, private equity, and pharma sectors are leading the charge, with more than half of their CEOs planning to boost hiring. Interestingly, generative AI (GenAI) is playing a pivotal role in these decisions. Many CEOs report that AI has not only improved efficiency but also led to revenue and profit gains.
Challenges on the Horizon: Economic Risks Remain
Despite the optimism, CEOs are keeping a close eye on potential risks. Macroeconomic volatility and inflation remain top concerns, but regional differences highlight unique challenges. For instance, geopolitical conflicts are the biggest worry in the Middle East and Eastern Europe, while cyber risks take precedence in Western Europe.
In North America and Asia-Pacific, concerns align more closely with global averages, focusing on inflation and economic instability. This regional perspective underscores the diverse challenges CEOs face depending on their market.
Reinventing Business Models: The Need for Agility
A striking 42% of CEOs believe their companies won’t be viable in the next decade without significant changes. This belief is driving a wave of reinvention, with nearly two-thirds of CEOs taking bold steps to transform how their companies operate. From venturing into new sectors to shifting resources within their organizations, leaders are exploring every avenue to stay competitive.
However, the pace of change is slow. Many companies are still cautious about reallocating resources, with half of the CEOs moving only a small percentage of their budget and workforce between projects. This hesitation could hinder long-term growth and adaptability.
GenAI’s Impact: A Mixed Bag of Results
While GenAI has delivered tangible benefits, the results have been somewhat mixed. More than half of CEOs have seen efficiency improvements, but only a third report profitability gains. Trust in AI remains a hurdle, with only a small fraction of leaders fully confident in embedding AI into their processes.
Despite these challenges, the optimism surrounding AI’s potential is growing. Almost half of the CEOs plan to integrate AI into their operations within the next three years, highlighting a belief in its long-term value.
Climate Investments: A Revenue Booster
On the climate front, CEOs report that investments in sustainability are paying off. These efforts are six times more likely to boost revenue than to cut it, showing that going green can be good for business. Regulatory complexity remains a challenge, but the overall financial impact of climate initiatives is overwhelmingly positive.