According to KPMG’s annual survey of more than 1,300 CEOs – 150 in the UK – of the world’s largest businesses, despite increasing challenges, most UK CEOs have a positive, three-year economic outlook.
Jon Holt, chief executive of KPMG in the UK, said: “UK business leaders have had to face into a myriad of complex challenges over the past year with geopolitics and political uncertainty cited as the biggest threats to their growth prospects.
“We know that what CEOs really want is certainty to support long term-business planning. And to stay ahead and build a stable business for the future, most are chasing that competitive edge for their firms and their clients, including better digitisation.
“Despite half of CEOs only expecting a return on investment in three to five years they are investing heavily in generative AI, while also sticking to their sustainability efforts and continually debating the return to office question.”
ECONOMIC OUTLOOK
Almost three in four global CEOs (73 percent) are confident about the economy over the next three years, compared to 71 percent last year. It reflects a clear resilience and a collective focus to get the world back on a sustainable, long-term growth trajectory.
TECHNOLOGY AND GENERATIVE AI
As tools like Bard and ChatGPT have gained prominence, global CEOs increasingly recognize generative AI’s seemingly limitless potential and are keeping their foot on the gas in terms of their investment and exploration of the technology.
The survey shows that 70 percent are investing heavily in generative AI as their competitive edge for the future, with most (52 percent) expecting to see a return on their investment in three to five years. In fact, increased profitability was cited as the number one benefit of implementing generative AI within an organization (22 percent).
Despite how AI may help detect cyber-attacks, 82 percent believe it could also bring about new dangers by providing new attack strategies for adversaries.
TALENT
Global CEOs are steadfast in signalling their support of pre-pandemic ways of working, with a majority (64 percent) anticipating a full return to office is only three years away. This remains consistent with their views in the 2022 CEO Outlook. What’s more, 87 percent of CEOs say they are likely to reward employees who make an effort to come into the office with favorable assignments, raises or promotions.
The KPMG 2023 CEO Outlook survey, conducted in August and September 2023, also revealed that a majority of CEOs (64% globally and 63% in the UK) predict a full return to in-office working by 2026.
THE HYBRID WORKING DEBATE
CEOs are increasingly steadfast in their support of pre-pandemic ways of working, with a majority (64% globally and 63% in the UK) predicting a full return to in-office work within the next three years. And 87% of CEOs (83% in the UK) surveyed express a likelihood of linking financial reward and promotion opportunities to a return to in-office working practices.
CEOs CONTINUE TO PRIORITISE ESG DESPITE POLARISING DISCOURSE
Despite a year of polarising debate surrounding the term ESG, CEOs recognise that delivering against the environmental, social and governance issues remains an integral part of their business operations and long-term corporate strategies. This is supported by 69% of CEOs (79% in the UK) who have embedded ESG into their business as a means of value creation.
Reflecting a shift in awareness and dialogue on ESG, 35% of CEOs (44% in the UK) have changed the language they use to refer to ESG both internally and externally. This signals a trend towards CEOs getting more specific about each aspect of the acronym and prioritising their efforts where they can have the most impact.
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