KPMG Survey Reveals CEOs Are Optimistic about Growth

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KPMG (Credit: Getty)
KPMG survey reveals business leaders are optimistic about growth prospects as investment focus shifts to AI

KPMG’s annual CEO survey has revealed that business leaders remain optimistic about their growth prospects, with Generative AI as their main investment priority. 

The survey has revealed that 68% of private company CEOs are confident in their businesses’ potential for growth over the next three years, and 48% expect their companies to grow by up to 2.9% during this time.

This year’s KPMG CEO outlook survey further showed where CEOs’ priorities lie, with 62% stating that GenAI is their top investment priority.

KPMG’s survey, with responses from over 1,300 global CEOs, further showed that 26% of respondents view mergers and acquisitions (M&As) as their leading growth strategy. 

David Rowlands, KPMG International Global Head of AI 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 centre for business leaders."

The survey revealed that 64% of global CEOs would invest in AI regardless of economic conditions. 

However, only 38% of CEOs are confident that their employees have the right skills to fully leverage AI benefits; this highlights the growing challenge of maintaining a skilled workforce in an era of rapid technological advancement.

Talent management has further emerged as a critical concern. One third of respondents identified employee retirement, and skilled worker shortages, as primary operational constraints, but 92% of respondents said they plan to increase their overall workforce headcount within three years.

Economic outlook and business growth challenges

Over the past decade, CEO confidence in the global economy has waned, reflecting growing complexities.

While 72% of CEOs remain optimistic about the economy, this is a significant shift from the 93% seen in 2015, when the survey first launched.

The report states that CEOs are most concerned about the impact of supply chain disruption and operational issues on their business' growth in the next three years. These concerns now outrank cyber security and geopolitical uncertainty.

"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", said Bill Thomas, KPMG International Global Chairman & CEO.

Navigating ESG in a politicised landscape

The survey has also shown that CEOs are grappling with increasing politicisation around environmental, social, and governance (ESG) issues. 

John McCalla-Leacy, KPMG International Head of Global ESG, said: "We're seeing growing politicisation and polarisation of issues such as social mobility and climate change, and this is creating fresh new challenges for CEOs who are already under pressure to perform."

CEOs on the return to office debate 

The KPMG report additionally reveals a hardening stance on returning to pre-pandemic work practices. Some 83% of CEOs expect a full return to the office within the next three years, up from 64% in 2023.

A considerable 87% of surveyed business leaders said they are likely to reward employees who make an effort to come into the office with favourable assignments, raises or promotions.

Nhlamu Dlomu, KPMG International Global Head of People, said: "The successful leaders of tomorrow will be those who understand that their talent dilemma can only be solved by investing in, nurturing and supporting talent through a 'social contract' that understands today's employees don't just desire, but expect a more agile, flexible working environment."

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