Business heads from global industries prove to be worried for their businesses viability amidst fast-growing technologies like artificial intelligence (AI) and the environmental concern that is climate change, as per the latest survey from PricewaterhouseCoopers (PwC), as reported by Reuters.
In the next ten years, around 45% of 4,702 worldwide CEOs questioned, do not think their companies would survive unless there are major changes. While the majority of poll participants expressed great anxiety over generative AI advancements, with over 75% anticipating a major impact on their organization within the next three years.
4 out of 10 CEOs on the other hand, said they accepted lesser profits for investments that were climate-friendly, according to the PwC poll, which also revealed a heightened focus on environmental concerns eroding margins.
As per the Associated Press reporting on the same story, the poll of 4,702 CEOs worldwide was revealed on Monday as corporate titans, political figures, and activists flocked to Davos, Switzerland for the World Economic Forum's annual conference. The results thereafter painted a mixed picture of what lies ahead amidst AI and the changing climate.
AI and Climate Change on Businesses
Artificial intelligence was viewed as both a strength and a means of streamlining corporate processes. The way their organization produces, distributes, and captures value in the next three years will change considerably, according to nearly three-quarters of the CEOs, according to PwC.
While 69% of the CEOs stated that their staff needed training to acquire the necessary skills to exploit the emerging technology, more than half of them claimed AI will improve their goods or services. They were also worried about how AI will lead to more false information and cybersecurity threats.
AI being one of the main concerns of businesses is not a surprising development as recently, a CNBC report states that according to a poll conducted by online education platform edX, over half of CEOs, or 49%, believe AI might easily replace "most," or even "all," of their own positions.
Additionally, 47% believe it would even be beneficial. The poll, which was released on Tuesday, involved 1,600 full-time American employees, 800 of whom were non-executive employees and 800 of whom were C-suite executives and CEOs.
As for climate change, the PwC poll states that climate change is the most significant of the megatrends forcing CEOs to reimagine themselves. CEOs reportedly claim varying degrees of accomplishment in achieving their declared goals.
About two thirds of respondents indicate they are working to increase energy efficiency; 10% report having completed such projects; and roughly half say they are working to develop innovative climate-friendly goods or services.
CEOs throughout the world are embracing fewer hurdle rates to climate-friendly investing but a mere 31% stated they had no intentions to address climate risks in financial planning, while less than 50% indicated improvement in this area.
CEOs on the Economy and Changes
PwC states that as businesses express their worries that change is needed, the results the 27th annual Global CEO Survey indicate that most businesses are already making some effort to reinvent themselves but challenges remain.
The CEOs reportedly claim that while they are working to bring about reforms, they are encountering obstacles such as regulations, a shortage of skilled labor, and more.
Despite worries for AI and Climate change, executive confidence in the health of the economy increased to 38% from 18% the previous year, when the world was beset by high inflation, sluggish growth, increasing interest rates, and other issues.
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