Generative artificial intelligence a top concern for CEOs, survey shows

Davos — Global executives are increasingly worried about the long-term viability of their businesses, a new PwC survey shows, with pressures mounting from generative artificial intelligence (AI) and climate disruption.

The survey was released as the 54th World Economic Forum (WEF) annual meetings were under way in Davos, Switzerland, on Monday.  

About 45% of more than 4,700 global CEOs surveyed do not believe their businesses will survive, barring significant changes, in the next ten years, the Big Four auditor said. 

While they see generative AI as having an enormous promise, two-thirds also believe it will increase competitive intensity in their industry, and 61% say it will require most of their workforce to develop new skills, the survey shows.

"There’s the 55% who think they don't have to change radically, and I would argue that’s a little naive because the world is changing so fast around them," PwC Global chair Bob Moritz told the Reuters Global Markets Forum (GMF) in Davos.

Advancements in generative AI is a top concern for most survey respondents, with almost 75% predicting it would change their business in the next three years. But about 61% of those in the US say the technology will improve the quality of their products.

The majority expect AI to require training in new skills for employees, while many expressed concerns about cybersecurity risks, misinformation and bias towards specific groups of customers or employees.

"If you just look at the same skills, I think yes, there will be impact," said SAP chief technology officer Juergen Mueller, referring to job losses and hiring freezes on junior positions in the tech sector.

"Therefore, what you do need is even better skilled people," Mueller said.

The PwC survey also showed a stronger focus on environmental concerns pressuring margins, with four in ten executives saying they accepted lower returns for climate-friendly investments.

Less than 50% reported progress, including on climate risks in financial planning, with 31% saying they had no plans to do so.

Overall, companies were more confident in the global growth picture, with 38% optimistic on growth, which was more than double those surveyed in 2023.

However, they were also less optimistic on revenue growth over the next year, with 37% confident of their ability to increase revenue, versus 42% in 2023.

"The ability to raise rates and raise prices is not as easy as ever before ... that’s going to be a trend that we’re likely to see over the next two to three years," Moritz said.

PwC’s survey found that Britain was the top country to invest in, with nearly a third of US CEOs selecting the traditionally popular country as their top target.

Britain’s standing among China’s CEOs rose dramatically, to joint sixth, up from sixteenth last year.

However, the former EU member has become slightly less strategically important for global CEOs, falling one place to fourth behind Germany, with the US and China keeping their first and second places, respectively.

Reuters