Despite the current economic turbulence, CEOs of the world’s largest companies are optimistic about sustainable future growth through AI and talent development, a new global study has revealed.
In fact, AI is seen as crucial to growth, with 96% of CEOs having already deployed it in some form, according to the second annual Arthur D Little CEO Insights Study. However, most are at early stages of its adoption, with just 13% have a compelling, enterprise-wide AI strategy in place.
The study of nearly 300 global CEOs leading companies with a turnover of more than $1 billion, found that whatever their strategy or sector, global CEOs are increasing investments in growth through tech adoption and internal talent development. In fact, 66% said they are highly positive about the global outlook over the next three to five years.
“The world faces a range of pressing challenges, intensified by current turbulence. Innovation is central to overcoming these issues,” stated Ignacio García Alves, Chairman and CEO at Arthur D Little. “Our 2024 CEO Insights Study shows that CEOs agree and are focusing on bringing together AI and human skills to innovate and move forward to ensure future success for their businesses and society as whole.”
AI, RESKILLING & ESG FOCUS
Most importantly, CEOs understand that to get the best from AI, they need to focus on their people skills. The study found that 59% have a strong or very strong need to reskill their workforces to meet changing requirements; up from 13% in 2023. This trend is particularly pressing in sectors such as manufacturing, with a 63% increase in the need to reskill, and financial services (+55%).
Alongside AI and reskilling, the third growth focus for CEOs is environmental, social, and governance (ESG). Over three-quarters (77%) are embedding ESG holistically across their organisation, with CEOs believing its impact on growth strategies will increase by 26% over the next three years.
REGIONAL VARIATIONS FOR SUSTAINABLE FUTURE
Attitudes and plans, however, vary between sectors and regions. Seventy-eight percent of Asian CEOs forecast positive growth over the next three to five years, compared to 55% of those in South America, for example. Turning to AI, 69% of financial services CEOs had a company wide strategy or strategic view in place, in contrast to 56% of energy and utility companies.
“Given today’s business and geopolitical turmoil, it is extremely heartening to see that the CEOs of the world’s biggest companies are positive for the future,” said Francesco Marsella, Managing Partner and Global Leader of the Growth and Transformation Practices at Arthur D Little. “The study shows that while they accept that conditions will remain volatile and turbulent, they believe a combination of resilient operating structures, clear strategies, AI innovation and reskilling their people will enable their businesses to thrive in a sustainable future.”
Check out the full report and recommendations here.
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