- Nearly 60% of CEOs expect rising global growth over the next 12 months, up from 38% last year and 18% two years ago.
- 42% plan to increase their workforce over the next 12 months, more than double the number planning to decrease. CEOs more likely to say GenAI led to an increase in headcount rather than a decrease
- CEOs are seeing tangible impacts from GenAI: 56% reported efficiency gains, while a third saw increased profitability (34%) and revenue (32%).
- 42% of CEOs believe their business will not be viable beyond the next 10 years without reinvention, with nearly four in ten saying they began competing in new industries in the past five years.
- Climate-related investments are six times more likely to have led to an increase in income than a decrease in income
DAVOS, Switzerland, January 21, 2025 /PRNewswire/ — Nearly 60% of CEOs around the world expect global economic growth to increase over the next 12 months, according to PwC’s 28th annual global CEO survey, launched today at the annual meeting of the World Economic Forum.
The report, which surveyed 4,701 CEOs across 109 countries and territories, also reveals that 42% expect their headcount to increase by 5% or more over the next 12 months, more than double that of the proportion who expect a reduction in staff numbers (17%), compared to 39% last year. The percentage is highest (48%) among small businesses (less than 100 million US dollars) and those in the technology (61%), real estate (61%), private equity (52%), and pharmaceutical and life sciences (51%) sectors.
Even though CEOs are optimistic about the global economy, macroeconomic volatility (29%) and inflation (27%) nevertheless remain the top risks for the year ahead cited by CEOs around the world, but with clear differences between regions. Geopolitical conflict is considered the greatest risk in the world. Middle East (41%) and Central and Eastern Europe (34%). In Western Europe, cyber risk (27%) is a slightly bigger concern than a lack of skilled workers (25%) and inflation (24%) – with macroeconomic volatility topping the list at 29%. Inflation is the main concern Africa (39%), while North America And Asia-Pacific prioritize risks in line with global averages.
Mohamed Kande, Global Chairman of PwC, said:
“The results of this year’s CEO survey highlight a striking juxtaposition: Business leaders around the world are optimistic about the year ahead, but also know they need to reinvent how they create, deliver and capture value. Emerging technologies such as GenAI, geopolitical changes and the climate transition are revolutionizing the way the economy functions. New business ecosystems are forming, transforming how businesses compete and create value. To thrive, business leaders must act now and make bold decisions around their strategy – around people, footprint and sourcing. to the point of reinventing their business model.”
The reinvention imperative
As in the past two years, four in ten CEOs (42%) believe their company will not be viable beyond the next decade if it continues on its current path. Among those who do not expect significant changes, 42% cite changes in the regulatory environment as having the greatest influence on their economic viability.
But CEOs are taking action: Across all industries, nearly two-thirds (63%) have taken at least one significant step to change the way their company creates, generates and captures value in the past five years, with CEOs having undertaken more reinvention. stocks over the past five years reporting higher profit margins over the past 12 months.
As companies look to reinvent their business models, nearly four in ten (38%) say they have started competing in at least one new industry in the past five years – and about a third (34%) note that this represents more than 20%. of the company’s turnover over this period.
However, the pace of reinvention is slow and a large majority of companies lack agility. When it comes to moving budget and people between projects and business units, about half of CEOs told us they reallocate 10% or less of financial and human resources from year to year . More than two-thirds reallocate less than 20%. On average, only 7% of revenues over the past five years came from new, distinct businesses.
CEOs optimistic about GenAI’s potential, but looking for stronger results
CEOs report tangible impact from GenAI. More than half (56%) say they have seen efficiencies in their employees’ time over the past 12 months, and a third (32%) have seen an increase in revenue.
However, performance is slightly below expectations expressed last year. In 2024, 46% said they expect their profitability to improve. A year later, when we asked them if they had seen these gains, only 34% said yes. Trust in AI remains a barrier to broader adoption. Only a third of CEOs say they have a high degree of confidence in integrating technology into key processes in their business.
Despite this, optimism about GenAI’s impacts on profitability is up slightly from last year – with 49% expecting an increase over the next 12 months. About half (47%) plan 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% plan to develop new products and services.
Although it is still early days, nothing in our data suggests a widespread reduction in employment opportunities in the global economy due to GenAI. More CEOs say GenAI has increased its workforce rather than reduced it (17% vs. 13%).
Matt Wood, Global and US Head of Business Technology and Innovation (CTIO), PwC, said:
“This year’s survey shows a more mature view of GenAI in the enterprise. CEOs are convinced 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 face. They must navigate to realize this value. They see the importance of building trust in how their AI systems are designed and, for now, are prioritizing integration into core business processes. It is important that they also see the potential of GenAI to generate growth. new products and services and create value in new ways. »
Climate investments are paying off
As the climate transition 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 measures were six times more likely to have resulted in increased revenue (33%). than a reduction in income (5%). Additionally, nearly two-thirds of CEOs reported that climate-related investments reduced costs or had no significant impact on costs.
However, challenges remain when it comes to launching climate-related investments: CEOs who have made such investments cite regulatory complexity as the main factor (24%) inhibiting their company’s ability to launch these investments, as opposed to lower returns on investment (18%) or lack of buy-in from management or the board of directors (6%).
Carol Stubbings, global commercial director at PwC, said:
“More than three decades of digitalization have begun to break down once-impermeable boundaries between sectors, while the combined impact of the climate transition, AI and other megatrends will accelerate the reconfiguration process. This survey shows that business leaders face this future with a combination of optimism about the economy and the realism that businesses must fundamentally reinvent how they create value if they are to thrive in the future. ‘future. »
Notes to editors
About the 28th PwC Annual Global CEO Survey
PwC surveyed 4,701 CEOs in 109 countries and territories from October 1 to November 8, 2024. Global and regional figures are weighted proportionally to the country’s nominal GDP. Sector and country level figures are based on unweighted data from the full sample of 4,701 CEOs. Full results can be viewed at pwc.com/ceosurvey.
About PwC
At PwC, our goal is to build trust in society and solve important problems. We are a network of firms in 149 countries with more than 370,000 people committed to providing quality assurance, advisory and tax services. Learn more and tell us what matters to you by visiting us at www.pwc.com.
SOURCE PwC
