Geopolitical instability and inflation are greater concern
According to the latest report from Deloitte released today, a significant shift has occurred in the challenges faced by global CEOs. For the first time in two years, talent is no longer the primary concern. Instead, the top external factors expected to influence or disrupt their business strategy within the next 12 months are geopolitical instability and inflation, with both factors cited by 57% of the surveyed CEOs.
The report also highlighted a decline in the perception of labor and skills shortage as a disruptor, decreasing to 36% from 38% in a survey conducted in February 2023.
Interestingly, the report found that global CEOs are increasingly investing in generative artificial intelligence, recognizing its potential to create disruptions across various industries. Of the CEOs surveyed, 55% are evaluating or experimenting with generative AI, and 37% have already begun implementing it to some degree. Moreover, a vast majority (79%) believe that generative AI will increase efficiency, while 52% are confident it will provide growth opportunities.
Jason Girzadas, CEO of Deloitte US, emphasized that despite facing numerous complex challenges, such as geopolitical uncertainty and economic volatility, CEOs remain committed to seizing opportunities presented by emerging technologies. They do so while exercising a cautious approach and effectively managing risks.
One noteworthy aspect discussed in the report is the topic of a potential recession. Approximately 53% of global CEOs anticipate a recession in the second half of either 2023 or 2024. Interestingly, while 14% of CEOs believe their country is currently experiencing a recession, 32% are not anticipating one in their country. Despite concerns surrounding a possible recession, a significant majority (89%) still expect some degree of growth for their organizations over the next year.
Deloitte gathered insights from a comprehensive survey of 143 CEOs representing over 19 industries. The survey took place between June 6 and June 13 and included Fortune 500 CEOs, Global 500 CEOs, and select CEOs from the global Fortune community.