#USA #Climate Investment #Davos #PwC CEO Survey #GenAI Impact

CEOs Optimistic About Global Economic Growth

According to the 28th Annual PwC Global CEO Survey, almost 60% of business leaders worldwide see potential for economic growth in the next year, showcasing an increase from previous years. This optimism, however, comes with an acknowledgment of substantial challenges, particularly concerning economic stability and inflation.

The survey, which included insights from 4,701 CEOs across 109 countries, reported that 42% of participants anticipate a 5% or greater increase in their workforce within the coming year—a notable rise from only 17% who foresee layoffs. The largest growth in hiring is expected within sectors such as technology, real estate, and pharmaceuticals, where CEO optimism runs particularly high.

Navigating Economic Challenges

While the outlook is positive, CEOs recognize persistent threats to stability. Issues such as macroeconomic volatility and inflation remain the top concerns. In specific regions, geopolitical tensions pose additional risks; for instance, 41% of CEOs from the Middle East cite this as their primary worry, while cybersecurity ranks higher in Western Europe.

Mohamed Kande, Global Chairman of PwC, emphasized the need for businesses to reinvent their operational models to meet emerging challenges. Leaders understand that adapting to new technologies, particularly Generative AI (GenAI), and responding to climate shifts are critical for long-term success.

Reinvention Imperative

Continuing the trend of the last two years, a striking 42% of CEOs express doubts about their company's long-term viability without significant changes. These leaders are not only forecasting greater recruitment but are also actively exploring competition in new sectors, with 38% noting diversification as a significant segment of their revenue.

Despite their intent to innovate, many companies struggle with agility; nearly half of CEOs indicate they reallocate only about 10% of resources year-on-year, making substantial shifts rare. The survey underscores that while businesses have begun the reconfiguration process, many companies remain slow to adapt, with just 7% of revenue attributed to new ventures in recent years.

Gains from GenAI

The impact of GenAI is becoming increasingly evident. Approximately 56% of CEOs acknowledge efficiency improvements since integrating this technology, although they admit performance has not met initial expectations; only 34% have noted profitability gains. Matt Wood, PwC’s CTIO, highlighted an evolved perception towards GenAI, recognizing its potential to unlock new opportunities, although widespread employment disruption due to GenAI remains unfounded, as more companies report increased hiring rather than cuts.

Positive Climate Investment Outcomes

CEO engagement with climate-related initiatives shows marked promise—actions in this realm are six times more likely to contribute to revenue than to hinder it. However, leaders face hurdles in pursuing these investments, primarily citing complex regulations as a significant barrier.

Carol Stubbings, PwC's Global Chief Commercial Officer, noted that the intersection of various global trends emphasizes the necessity for leaders to adapt continually while maintaining an optimistic view of their economic prospects.

In conclusion, this year's survey reflects a dual outlook among CEOs: a wave of optimism about growth prospects blending with a sober recognition of the need for transformation. The journey towards agility, innovation, and sustainable growth remains an ongoing challenge, but the resolution among these leaders indicates a promising future.

About the Survey

The PwC survey reflects insights from a diverse range of industries and regions, ensuring that the results are representative of the global business landscape. For more detailed findings, visit pwc.com/ceosurvey.