Despite the ongoing uncertainty in the global economic landscape, CEOs in Australia and worldwide are showing increasing enthusiasm for investing in Generative Artificial Intelligence (Gen AI). This is according to the annual CEO Outlook survey released by KPMG International. The survey reveals that 58% of Australian CEOs and 64% of global CEOs consider Generative AI a significant investment area.
The report also indicates that despite economic challenges, CEOs remain confident about their company's future growth. In Australia, 86% of CEOs are optimistic about the growth potential over the next three years, with some even forecasting expansions of up to 20%. However, 64% of CEOs feel more pressure than last year, urgently seeking to ensure their company's long-term success.
Andrew Yates, CEO of KPMG Australia, stated that most CEOs expect to see a return on their investment in Generative AI within the next three to five years. They aim to improve efficiency and productivity through task automation.
Despite the high hopes for AI investment, the survey found that only 42% of Australian CEOs and 35% of global CEOs believe their data infrastructure is sufficient to support secure and effective AI integration. Ethical concerns remain a focus, with 60% of Australian CEOs and 63% of global CEOs expressing worries about the potential impacts of AI implementation.
Interestingly, CEOs generally do not believe that Generative AI will lead to job cuts. Instead, 72% of Australian CEOs and 76% of global CEOs think this technology will enhance productivity without reducing the workforce. However, only 40% of Australian CEOs believe their employees have the necessary skills to leverage Generative AI, necessitating a reevaluation of employee training and development strategies.
Economic confidence remains strong, with 88% of Australian CEOs being optimistic about the national economy, a higher percentage than the 78% of global leaders. This positive sentiment extends across various industries, with 78% of Australian CEOs and 74% of global CEOs also being optimistic about their respective sectors.
In terms of workplace trends, 82% of Australian CEOs expect white-collar workers to return to traditional offices within the next three years, an increase of 16% from last year. Only 27% of CEOs anticipate a hybrid work model, and none foresee a completely remote work format. Additionally, 78% of Australian CEOs prefer to reward employees who stick to working in the office.
On the issues of Environment, Social, and Governance (ESG), there is increasing emphasis. 82% of Australian CEOs are willing to divest from profitable businesses that could harm the company's reputation, a significant increase of 28% from last year. Meanwhile, 26% of CEOs are concerned that failing to meet ESG expectations could affect their job security.
The 2024 KPMG Global CEO Outlook paints a picture of cautious optimism. CEOs are heavily investing in Generative AI while focusing on ESG and employee development. Despite facing complex challenges, they maintain hope for future growth and economic conditions.
** Key Points: **
🌟 **58% of Australian CEOs and 64% of global CEOs consider Generative AI a significant investment.**
💼 **86% of Australian CEOs are optimistic about their company's growth potential over the next three years.**
🌍 **82% of Australian CEOs are willing to divest from businesses that could harm the company's reputation.**
