The data revealed that 45% of more than 4,700 global CEOs surveyed do not believe their businesses will survive, barring significant changes, in the next ten years, according to the “Big Four” auditor.
“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 Chairman Bob Moritz told the Reuters Global Markets Forum (GMF) ahead of the World Economic Forum’s annual meeting in Davos.
Advancements in generative AI were top of the concerns for most survey respondents, with almost 75% predicting it would significantly change their business in the next three years.
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 Juergen Mueller, SAP’s chief technology officer, 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 told GMF at Davos.
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.
Derek Mackenzie, CEO of Investigo, part of The IN Group commented: “AI will bring seismic changes to the way businesses operate, shaking up traditional job roles and leaving firms in urgent need of staff with the latest digital skills. Against the backdrop of deeper economic issues, companies need to meet these tests head-on by investing and building stronger talent pipelines.
“Failure to do so will leave organisations poorly equipped for the inevitable changes and challenges ahead, missing out on a major digital revolution,” he added.
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.
