Chief executive officers are less optimistic about the growth of their companies in the next three years. They mention artificial intelligence and ESG as their priorities and are willing to reward employees who are back in their offices instead of working remotely.
These are some of the conclusions of a survey conducted by accounting firm KPMG with 1,300 CEOs, including 400 in the U.S.
"With the pace of change unrelenting, CEOs are taking bold, decisive action and embracing equity, purpose and sustainability to ensure their organizations achieve their long-term growth ambitions," Paul Knopp, KPMG U.S. chair and CEO, said in the introduction of the study.
Among CEOs surveyed in the U.S., 79% are confident about growth prospects for their companies, a lower number than the 95% in 2022.
Overall, only 24% of the executives expect their companies to grow between 2.5% and 5% annually in the next three years. More than half forecast an expansion of less than 2.5%.
Geopolitics, political uncertainty and disruptive technology were cited by U.S. CEOs as the biggest threats to growth.
Betting on AI
AI is considered as the main priority for CEOS, KPMG said. They cited more profitability, new product and market growth, innovation and help to avoid fraud and cyber attacks as expected results of the use of technology.
This week, JPMorgan Chase CEO Jamie Dimon told Bloomberg TV in an interview that future generations may work 3 ½ days a week because of AI. He also said that the bank "hopes to redeploy people" if AI replaces jobs.
ESG
Most of the CEOs surveyed by KPMG responded that they have fully embraced Environment, Social and Governance investing, or ESG, to create value.
They see those investments as a way to build customer relationships, improve financial performance, reputation and to attract talent.
In-Person Work
In a clear change from last year's survey, CEOs are now more confident that workers will return to offices.
Sixty-two percent of U.S. chief executives believe that employees will be physically in their offices in the next three years. In the 2022 survey, that number was at 34%.
Ninety percent of U.S. CEOs said they are willing to reward employees who work in the offices with favorable assignments, raises and promotions, according to KPMG.
