From the race to embrace artificial intelligence (AI) to ever-mounting geopolitical concerns, the challenges faced by the CEOs of today are vast and complex. Alongside these external pressures, internal challenges such as upskilling the workforce and hybrid working are pushing CEOs to be agile and adaptable in their stakeholder management while also keeping an eye on long-term growth.
First launched globally 10 years ago, the KPMG CEO Outlook surveys more than 1,300 global business leaders overseeing companies with revenues of at least US$500M from some of the world’s biggest economies and key industries.
The last 10 years have been defined by volatility, ranging from the economic and social shockwaves of the COVID-19 pandemic to the resurgence of inflation and geopolitical tensions.
In the face of this, leaders have had to adapt to an unprecedented array of challenges that have not only placed greater pressure on CEOs’ shoulders but driven a waning of confidence in the global economy.
Yet, global leaders remain resilient, leading their businesses on a path to sustainable growth. Global leaders continue to create a solid foundation by betting big on AI and bolstering their workforce to adapt to evolving business needs.
This year’s survey shows that CEOs are optimistic about their organization’s future, with 92 percent of leaders looking to increase the overall headcount of their workforce, but also recognizing they need to future proof the skillsets of their people and demonstrate increased employee value proposition to attract and retain talent. Balancing ambition and appropriate caution will be key when it comes to ESG issues if CEOs want to avoid stakeholder criticism and, more importantly, do the right thing.
Bill Thomas, Global CEO & Chairman, KPMG International, said: “The last ten years has been framed by a backdrop of volatility and change, from a global pandemic to surging inflation and the rise of AI. In the face of such pressures, CEOs are steadfast about the need to invest in the future.
“Turbulence calls for leaders to be more resilient, agile and innovative than ever before. As we look ahead to the next ten years, CEOs who set bold strategies to adapt to our fast-changing world and invest in the right technologies and talent to make their plans a reality, can deliver sustainable, long-term growth.”
Technology and generative AI: AI front and center as the urgency around adoption accelerates
David Rowlands, Global Head of AI, KPMG International, said: “When KPMG first launched CEO Outlook ten years ago, AI technologies simply weren’t something people were talking about. Fast forward to today, and it’s now front and center for business leaders, with workforces eager to embrace the seemingly endless possibilities the technology creates.
“While I’m encouraged that the CEOs surveyed are taking AI so seriously and investing in innovation and technology, it’s important that the rush to adopt doesn’t come at the cost of genuine, ethical and transformative implementation. AI can add value to every aspect of business, but all employees need to be part of that journey. With the right upskilling and a focus on unlocking the true potential of AI, there’s an opportunity for the business community to play a major role in shifting the world’s economies back toward a trajectory of long-term, sustainable growth.”
For the CEOs surveyed, technological innovation has been the single most disruptive force over the past 10 years, with emerging and disruptive technology landing as a top three risk to growth in six of the past nine surveys.
When KPMG first launched the CEO Outlook a decade ago, AI was gaining traction with breakthroughs in areas such as image recognition, natural language processing and autonomous vehicles. In 2024, the majority (64 percent) of global CEOs indicated that they would invest in AI regardless of economic conditions. And while today’s AI use-cases generate plenty of buzz in the public discourse, global CEOs recognize the need to seize the challenges that lie ahead, considering AI’s potential to transform every aspect of our everyday life.
Workforce upskilling a key piece of the AI puzzle
Despite public concern around the risk of redundancies, CEOs recognize the transformative potential of AI and remain confident that it will not have a detrimental impact on the workforce, with over three quarters (76 percent) of CEOs anticipating AI will not fundamentally reduce the number of jobs within their organizations over the next three years.
Yet, CEOs also recognize their workforce will need to adapt to fully harness the opportunity, as when asked about their organization’s current AI readiness, only 38 percent of CEOs were confident that their employees have the right skills to fully leverage the benefits. Furthermore, 58 percent agree that the integration of generative AI has made them rethink the skills required for entry-level roles.
Where CEOs invest will be key
This growing commitment to AI shows that global CEOs are building on the capital expenditure momentum witnessed last year, as all CEOs say they plan to invest in AI in some form. They recognize AI’s potential to increase efficiency and productivity (16 percent), upskill the workforce for future readiness (14 percent) and increase organizational innovation (13 percent). However, a majority of CEOs (63 percent) acknowledge an ROI on AI is unlikely for at least three to five years — in line with last year.
Ethical implementation of AI a concern for most
Amid growing concerns about the ethical use and implementation of AI, CEOs are increasingly aware of the risks tied to its rapid adoption. Well over half (61 percent) identified ethical challenges as some of the most difficult issues to address when implementing AI within their businesses — an increase from 57 percent in 2023.Additionally, concerns over a lack of regulation (50 percent) and insufficient technical skills and capabilities (48 percent) further complicate the path forward.