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A new survey by consulting firm PwC has revealed a growing number of executives don't think their companies will survive the next 10 years because of pressure from climate change and technology.
- The PwC survey was conducted among 4,702 CEOs in 105 countries and territories
- Nearly a third of executives say climate change is expected to shift how they do things
- More than half of the chief executives say AI will make their products or services better
The PwC Global CEO Survey said executives believed there needs to be a major overhaul if their companies want to stay afloat with setbacks like artificial intelligence (AI) and climate change.
The survey of more than 4,700 CEOs worldwide was released on Monday as business elites, political leaders and activists descended on the World Economic Forum's annual meeting in Davos, Switzerland, and it showed a mixed picture of the coming years.
Of the executives, 38 per cent were optimistic about the strength of the economy, up from 18 per cent last year, when the world was mired in high inflation, weak growth, rising interest rates and more.
The CEOs' expectation of economic decline has dropped to 45 per cent from a record-high 73 per cent last year, and fewer saw their company as highly exposed to the risk of geopolitical conflict, according to the survey.
Even with the improved economic outlook, the challenge isn't close to over, with the global economy expected to slow for a third consecutive year, according to the World Bank.
Meanwhile, the executives felt worse about the prospects for their companies' ability to weather big changes.
The survey showed 45 per cent of the respondents were worried that their businesses wouldn't be viable in a decade without reinvention, up from 39 per cent last year.
The CEOs said they're trying to make changes, but they were running up against regulation, a lack of skills among workers and more.
"Whether it is accelerating the rollout of generative AI or building their business to address the challenges and opportunities of the climate transition, this is a year of transformation,” Bob Moritz, global chairman of PwC said in a statement.
Nearly three-quarters of the executives said "it will significantly change the way their company creates, delivers and captures value in the next three years," PwC said.
More than half of the chief executives said AI will make their products or services better, but 69 per cent noted that their workers needed training to gain skills to use the developing technology.
Organisers of the Davos gathering warned last week that the threat posed by AI-powered misinformation, such as the creation of synthetic content, is the world's greatest short-term threat.
Similar to AI, the PwC survey showed that the climate transition is both an opportunity and a risk.
Nearly a third of executives said climate change was expected to shift how they do things over the next three years.
More than three-quarters of the executives said they have begun or completed changes to increase energy efficiency, but only 45 per cent noted that they have made progress on taking the climate risks into account in financial planning.
The PwC survey of 4,702 CEOs in 105 countries and territories was conducted from October 2 to November 10.
ABC/AP