According to the KPMG 2023 CEO Outlook, geopolitical and political uncertainty are now the top risks to business growth. This marks a significant shift in senior executives’ concerns, as these issues did not even make the top five in the 2022 survey. While global economic confidence remains broadly unchanged since last year’s survey, CEOs now perceive a greater risk to their businesses. The persistent fluctuations in global politics and trade dynamics have compelled CEOs to reassess their strategic priorities and demonstrate resilience in navigating the intricate interplay of global political forces.
Over 75% of CEOs believe that rising interest rates and tightening monetary policies could risk or prolong the threat of a global recession. Additionally, over 75% of CEOs believe that cost of living pressures are likely to negatively impact their organisation’s prosperity over the next three years. Business leaders are facing challenges and obstacles to growth on multiple fronts, including increased stakeholder expectations in the ESG space and the adoption of generative AI.
Despite these challenges, CEOs remain bullish on generative AI, with 70% citing it as a top investment priority. While most CEOs expect to see a return on their investment in three to five years, ethical challenges remain their number one concern in terms of implementation. The cost of implementation, a lack of regulation, and technical capability were also cited as concerns. Leaders must spend their money in the right places and have the right skills to fully exploit the opportunities presented by AI.
It’s essential for CEOs to lead from the front by developing or adopting responsible, robust AI frameworks, upskilling their workforce, and focusing on safeguarding and governance. Lisa Heneghan, global chief digital officer, KPMG International, said, “AI is unquestionably the internet moment of our time.”
Martha Lane Fox, founder of lastminute.com, recently challenged tech leaders on diversity, saying, “There are no excuses. It is a business problem.” Leaders must take bold action to address diversity and create a more equitable and successful planet. The key to success will be an unrelenting focus on long-term, strategic planning and a commitment to avoid the danger of short-term, reactive leadership during a period of deep uncertainty.
