PwC’s 27th Annual Global CEO Survey

Canadian CEOs economic outlook more pessimistic than global peers, but generative AI provides opportunity for reinvention, says PwC CEO Survey

• 55% of Canadian CEOs expect domestic economic growth will decline this year, still relatively pessimistic when compared to their global peers' economic outlook 
•  36% of Canadian CEOs say their organization has adopted generative AI, compared to 32% of global participants
• 29% of Canadian CEOs believe that generative AI will increase their revenue in next 12 months

TORONTO, CANADA | 30 January 2024 – Canadian CEOs are significantly more pessimistic than their global counterparts, according to PwC’s 27^th Annual Global CEO Survey. 55% of Canadian CEOs expect domestic economic growth will decline this year, still relatively pessimistic when compared to 37% of global CEOs who expect economic growth in their country to decline.  

The survey, which interviewed 4,702 CEOs across 105 countries and territories including 114 in Canada, explored the growing need for CEOs to reinvent their organizations and the results reveal opportunities to accelerate the pace of reinvention, leverage generative AI, and overcome barriers to change.

The AI opportunity

More Canadian CEOs than global CEOs have already started adopting Generative AI technology – 36% in Canada vs 32% globally. Significantly, for employees in Canada who are eyeing the technology with some trepidation, only 14% of Canadian CEOs believe it will decrease their headcount in the next 12 months – considerably lower than global respondents, at 25%.

Canadian CEOs say they expect to see quick adoption of Generative AI given the improvements it can make to an organization. Nearly 60% believe it will significantly change the way their company creates, delivers, and captures value in the years to come and 29% of Canadian CEOs believe it will increase revenue in the next 12 months. However, Canadian CEOs also believe that AI will increase risk within their business related to cybersecurity (66%), misinformation (52%), legal liabilities and reputational risks (47%), and more than half (55%) agree that AI will require significant upskilling of their workforce in the next three years.

The reinvention imperative

The survey found that 32% of Canadian CEOs are questioning whether their organization will still be viable in 10 years - up from only 24% in 2023. While more Canadian CEOs appear pessimistic about their organization’s future, they are still more optimistic than their global peers (45%). Importantly, and in line with global peers, almost all (95%) Canadian CEOs reported that they have taken some steps to change how they create, deliver and capture value in the last five years.

When asked about barriers holding a company back from reinvention, Canadian CEOs pointed to organizational inefficiencies as a significant concern. CEOs suggested that approximately half the time spent by the company on emails (51%), performance reviews (50%), procurement/contracting (45%), and addressing tech issues (46%) is inefficient. 

Opportunities for Reinvention

1.     Reducing inefficiencies with the help of AI: Reduce inefficiencies that are weighing your organization down with investments in technologies like generative AI.

2.     Engage with employees about reinvention: By giving employees an active role in reinvention and helping them feel safe and proposing new ways of doing things, CEOs can not only uncover opportunities to accelerate technological adoption but also find even more solutions to the inefficient processes holding companies back. 

3.     Anticipating emerging risks: By anticipating emerging risks and spotting hazards early on, CEOs can take the necessary steps to address the challenges facing the organization.