Global CEOs express concerns for their firms as AI and climate risks increase, according to pre-Davos survey.
According to a survey conducted by PricewaterhouseCoopers before Davos, executives worldwide are growing more concerned about the future sustainability of their businesses. The survey revealed that the mounting pressures from generative artificial intelligence (AI) and climate disruption are major factors contributing to their worries.
Some 45% of more than 4,700 global CEOs surveyed do not believe their business will survive the next ten years barring significant change, the “Big Four” auditor said.
“These 55% think they don’t need to change radically, and I would say that’s a bit naive because the world is changing around them so fast,” Bob Moritz, global chairman of PwC, told the Reuters Global Markets Forum (GMF) upcoming. At the annual meeting of the World Economic Forum (WEF 2024) in Davos.
Advances in generative AI were the top concern for most survey respondents, with nearly 75% predicting it will significantly change their business over the next three years.
Most expect AI to require workers to be trained in new skills, while many expressed concerns about cybersecurity risks, misinformation and prejudice against certain groups of customers or employees.
“If you’re just looking at the same skills, I do think it’s having an impact,” said SAP CTO Juergen Mueller, citing job losses and hiring freezes in junior tech roles.
“That’s why you need even better skilled people,” Mueller told GMF in Davos.
The PwC survey also found that environmental concerns are putting pressure on margins, with four in 10 executives saying they would accept lower returns from climate-friendly investments.
Less than 50% reported making progress including climate risks in financial planning, and 31% reported no plans to do so.
Overall, businesses were more confident about the global growth picture: 38% were optimistic about growth in 2023, more than double the survey.
However, they were less optimistic about revenue growth over the next year, with 37 percent confident in their ability to increase revenue in 2023, compared to 42 percent in 2023.
“The issue of raising interest rates and raising prices is not as easy as it has ever been before … that’s going to be a trend that we’re going to see over the next two to three years,” Moritz said.
BRITAIN IS CALLING
The PwC study found that the UK was the top investment destination, with almost a third of US CEOs choosing the traditionally popular country as their top destination.
Britain’s position among China’s CEOs rose dramatically to sixth, from sixteenth last year.
However, the former European Union member is slightly less strategically important to global CEOs, falling one place to fourth behind Germany, while the US and China retain their first and second places.
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