Nearly 60% of CEOs worldwide expect global economic growth to increase over the next 12 months, according to PwC’s 28th Annual Global CEO Survey, launched today during the World Economic Forum’s annual meeting.
- Nearly 60% of CEOs expect global growth to increase over the next 12 months, up from 38% last year and 18% two years ago.
- 42% expect an increase in headcount in the next twelve months – more than twice as many as a reduction. CEOs say GenAI has led to an increase in headcount rather than a decrease
- CEOs are seeing tangible results from GenAI: 56% reported efficiency improvements, while a third of companies increased their profitability (34%) and revenue (32%).
- 42% of CEOs believe their company will not be viable in the next decade unless it reinvents itself, with nearly four in 10 saying they have started competing in new areas in the last five years
- Climate-related investments are six times more likely to result in increased revenue than reduced revenue
The study, which surveyed 4,701 CEOs from 109 countries and regions, also shows that 42% of respondents expect their headcount to increase by 5% or more in the next 12 months – more than twice as many as those who do Expect a decline in the number of employees (17%), and more than last year (39%). The percentage (48%) is highest among smaller companies (less than $100 million) and in the technology (61%), real estate (61%), private equity (52%), and pharmaceutical and life sciences (51st) sectors %).
While CEOs are optimistic about the global economy, macroeconomic volatility (29%) and inflation (27%) remain the top risks for the coming year cited by CEOs worldwide, although with significant differences across regions . Geopolitical conflicts are seen as the greatest risk in the Middle East (41%) and Central and Eastern Europe (34%). In Western Europe, cyber risks (27%) are a slightly bigger concern than skills shortages (25%) and inflation (24%) – with macroeconomic volatility topping the list at 29%. Inflation reigns supreme in Africa (39%), while risks in North America and Asia Pacific are broadly in line with the global average.
Mohamed Kande, Global Chairman, PwC, commented:
“The results of this year’s CEO survey reveal a stark mismatch: leaders around the world are optimistic about the year ahead, but also know they must reinvent the way they create, deliver and capture value . Emerging technologies like GenAI, geopolitical shifts and climate change are revolutionizing the way the economy works. New ecosystems are forming, changing how companies compete and create value. To be successful, companies must act now and make bold decisions about their strategy – from people, to footprint and supply chain, to reinventing their business model.”
Reinvention is imperative
Consistent with the past two years, four in ten (42%) CEOs believe their company will not be viable beyond the next decade if it continues on its current path. Of those companies that do not expect to survive without significant change, 42% say changes in the legal environment have the greatest impact on their economic viability.
But CEOs are taking action – across all sectors, nearly two-thirds (63%) have taken at least one major action in the last five years to change the way their company creates, delivers and captures value, with CEOs who have taken more reinvention actions in the last five years, report higher profit margins in the last twelve months.
Almost four in ten companies (38%) say they have entered at least one new sector in the last five years, with around a third (34%) saying this represented more than 20% of company revenue over that period has.
However, the pace of reinvention is slow and the vast majority of companies lack agility. When it comes to moving budget and staff between projects and business units, about half of CEOs told us that they reallocate 10% or less of financial and human resources from year to year. More than two-thirds redistribute less than 20%. On average, just 7% of revenue over the last five years came from various new businesses.
CEOs are optimistic about GenAI’s potential but are looking for stronger results
CEOs report tangible impact of GenAI. More than half (56%) say they have seen efficiency gains in their employees’ working hours in the past 12 months, and a third (32%) have increased their revenue.
However, performance is slightly below last year’s expectations. In 2024, 46% said they expect profitability to improve. When we asked them a year later if they had seen these increases, only 34% said they had. Trust in AI remains a hurdle to wider adoption. Only a third of CEOs said they had a high level of confidence in embedding technology into key processes within their company.
Despite this, optimism about GenAI’s impact on profitability has increased slightly compared to last year – 49% expect an increase in the next twelve months. About half (47%) expect to integrate AI (including GenAI) into their technology platforms in the next three years, 41% plan to integrate it into core business processes, and 30% have plans to develop new products and services.
While it is still in its infancy, nothing in our data suggests a widespread reduction in employment opportunities across the global economy as a result of GenAI. More CEOs say GenAI has increased headcount than decreased headcount (17% vs. 13%).
Matt Wood, Global & US Commercial Technology & Innovation Officer (CTIO), PwC, sagte:
“This year’s study shows a more mature view of GenAI in companies. CEOs believe it has the power to unlock new opportunities – in fact, they are more optimistic than last year. At the same time, they are more aware of the challenges they must overcome to realize the value within. They see the importance of building trust when designing their AI systems and are prioritizing integration into core business processes for now. It is important that they also recognize GenAI’s potential to generate growth through new products and services and create value in new ways.”
Climate investments pay off
As climate change continues to impact businesses, CEOs continue to take action. When we asked CEOs to take stock of the financial impact of climate-related investments over the past five years, we found that these actions were six times more likely to result in revenue increases (33%) than revenue declines (5%). Additionally, nearly two-thirds of CEOs said climate-related investments either resulted in cost reductions or had no significant impact on costs.
However, there are still challenges in initiating climate-related investments: CEOs who have made such investments cite regulatory complexity as the most important factor (24%) preventing their companies from making these investments, as opposed to lower returns for investments (18%) or lack of approval from management or the board (6%).
Carol Stubbings, Global Chief Commercial Officer, PwC, sagte:
“More than three decades of digitalization have begun to break down previously impermeable boundaries between sectors, while the combined impacts of climate change, AI and other megatrends will accelerate the process of reconfiguration. This survey shows that business leaders are approaching this future with a combination of optimism about the economy and the understanding that business must fundamentally reinvent how it creates value if it is to thrive in the future.”
Notes for editors
Information about the 28th Annual PwC Global CEO Survey
PwC surveyed 4,701 CEOs in 109 countries and regions from October 1 to November 8, 2024. Global and regional figures are weighted proportionally to nominal GDP. Industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. The full results can be found at pwc.com/ceosurvey be retrieved.
Information about PwC
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