PwC Global CEO Survey: replanning in progress

By: Barok Eszter Date: 2025. 02. 20. 20:07

This article is available for reading in Trade magazin 2025/2-3.

Commenting on the survey of 4,701 CEOs in 109 countries, conducted between 1 October and 8 November 2024, Mohamed Kande, global chairman of PwC has told: CEOs are optimistic, but they are aware that value creation isn’t possible without renewal. Factors such as the recovery of supply chains, better adaptation by businesses and faster technological development are behind this growing optimism.

Renewal is inevitable

Positive sentiment among CEOs is particularly strong in the technology and real estate sectors, where 61% of executives plan to recruit new workers. Private equity (52%) and pharmaceuticals and life sciences (51%) also show strong growth intentions. 38% of CEOs said their company has entered new sectors in the last five years. According to the survey, 42% of executives believe their company won’t be viable in its current form in a decade unless it makes significant changes. 63% of managers reported that they have taken at least one significant step in the last five years to change the way their company creates, delivers and captures value. However, the pace of innovation is still slow. Half of CEOs reallocate only 10% of their resources each year.

Shifting trends are triggered by AI and climate change

Cross-sectoral partnerships

Industry restructuring is going to speed up over the next decade. The challenge for CEOs is to paint a picture of the ecosystem in which their companies will operate in the future. This means thinking carefully about the impact of megatrends – particularly climate change and artificial intelligence – how customer needs will change, how value chains will evolve and what roles each type of company will play. Cross-sectoral cooperation will become important. Generative artificial Intelligence (GenAI) has brought tangible benefits to companies: 56% reported efficiency gains, 34% talked about profitability improvements and 32% mentioned revenue growth. A major barrier to the adoption of GenAI is the lack of confidence in the new technology. Only one third of CEOs feel confident in integrating GenAI into key processes at their company. In spite of this optimism is growing: 49% expect profitability gains in the next 12 months as a result of GenAI adoption. According to Szabolcs Mezei, a partner at PwC Magyarország, managers are now more mature about the potential of AI.

Retail is one of the sectors where the number of employees has fallen slightly on account of AI

Climate innovation is also important

Among CEOs macroeconomic volatility is the biggest concern (29%), closely followed by inflation (27%). Cyber risks (24%) and lower availability of workers with key skills (23%) are also top threats. At regional level different challenges dominate, for instance in Central and Eastern Europe 34% of CEOs see geopolitical conflicts as a threat. The survey reveals that taking action against climate change not only makes companies more sustainable, but also pays off economically. Over the past five years 33% of CEOs experienced an increase in revenue as a result of climate-friendly investments, while only 5% reported a revenue drop. What is more, nearly two-thirds said these investments have cut costs or had no significant influence on them. //