Global instability top concern for US CEOs - survey
Global political instability remains the top concern for US CEOS, according to the Summer 2024 Fortune/Deloitte CEO survey.
Sixty per cent of 80 US CEOs surveyed cite geopolitical instability as their topmost worry, just as they did one year ago.
But just over half (51%) of CEOs are confident in their organisation’s ability to weather any geopolitical turmoil.
Inflation is also a growing concern, with 45% of respondents worrying about it compared with 27% in the winter 2023 survey. That said, 43% of CEOs are confident in their own organisation’s ability to weather any inflationary pressures.
Separately, 30% of US CEOs have concerns over regulation, though 47% say they are confident or highly confident they can navigate changes in the regulatory environment.
Workforce and talent issues also remain high on CEOs’ list of disruptors, with many CEOs reporting challenges keeping junior staff engaged.
Seventy-three per cent of CEOs are optimistic or very optimistic about their own organisation’s performance, despite only 48% being similarly optimistic about the prospects of their own industry, and just 29% feeling upbeat about the global economy.
Embedding generative AI
Four out of ten CEOs have implemented generative AI into their organisations to drive innovation, with the number of CEOs implementing GenAI to discover new insights (45%) and accelerate innovation (43%) increasing, as well as continuing to use it for activities such as task automation and risk management.
And the majority of CEOs report experimenting with or using the technology in their own jobs with uses including writing first drafts of documents, increasing understanding of technology, to innovating and piloting new business ideas.
What the US election means for CEOs
As November’s US election approaches, most CEOs expect it to have the most impact on taxes (46%), regulation (46%), and international trade and tariffs (45%) for their businesses, regardless of who wins.
With the upcoming elections in mind, CEOs are scenario planning to prepare for any possible outcome.
No going back on diversity
Despite the recent pushback against diversity, equity and inclusion (DEI) from companies such as Microsoft, which recently made its DEI team redundant, Google and Meta - as well as famous names such as Elon Musk dismissing such thinking – DEI remains a priority for many CEOs.
About 40% of CEOs have integrated DEI into their strategic goals, setting measurable targets and providing regular updates to their boards on DEI progress.
Jason Girzadas, CEO of Deloitte US, said: “CEO concerns’ about geopolitics, inflation, and ideological polarization intensify in the face of continued uncertainty, prompting robust scenario planning.
“Leaders are not only strategizing to navigate these complexities but are also committed to supporting their peoples’ resilience.
“Additionally, it is encouraging to see the proactive adoption and personal exploration of Generative AI by CEOs to drive innovation and enhance their daily work.”
Over 80 CEOs across 15 industries responded to the Summer 2024 Fortune/Deloitte Survey, which was conducted between 11-26 June 2024.
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