The Annual Global CEO Survey, a cornerstone study by PwC, collected insights from 4,702 CEOs worldwide this year. Its goal is to pinpoint significant trends and patterns in the global economy that influence crucial decision-making among business leaders. The 27th Annual Global CEO Survey investigates what it takes for companies to succeed by reinventing themselves in the face of existential threats, including technological disruption such as Generative Artificial Intelligence (AI).
Generative AI has the potential to profoundly reshape corporate operations by restructuring work processes and revolutionising business models. CEO respondents recognise the imperative for change and are confident in both the swift adoption of generative AI and its substantial potential for disruptive impact.
Demand for new skills, upskilling and training
Within the next three years, almost 70% of CEOs expect that generative AI will necessitate adjustments to their business models and demand new skills from their workforce. Indeed, 52% of CEOs felt the lack of skills in their workforce presented a barrier inhibiting reinvention and how the company delivers and captures value.
Efficiency
CEOs perceive about 40% of the time dedicated to routine administrative activities is inefficient, spanning from decision-making meetings, payroll processes, performance reviews, hiring processes, and handling emails. About 60% of CEOs anticipate generative AI to yield efficiency benefits by offering relief from some routine burdens. Also, if successful with its implementation, 84% of CEOs anticipate that generative AI will increase efficiencies in employees’ time at work.
This contrasts with the 31% of employees who, according to PwC’s 2023 Global Workforce Hopes and Fears Survey, believe generative AI will increase their productivity and efficiency at work. Therefore, CEOs need to involve their employees in the integration of generative AI to encourage employees to play an active role in reinvention. This requires building a culture of trust and aligning priorities for change, through transparent explanations about AI-related strategies to enable employees to feel more comfortable with its utilisation.
Reduction in Headcount
The efficiency gains linked to implementing generative AI may be partly achieved through a short-term reduction in employee headcount, with 25% of CEOs anticipating a decrease of at least 5% in employee numbers by this year. However, companies making early headcount reductions may already be balancing them out by hiring in others, as opportunities become more apparent. For instance, while 14% of technology CEOs expect to reduce headcount in 2024 due to generative AI, 56% of them also expect to hire in the same year due to technology being adopted.
Conclusion
Ultimately, leading companies will be those which align their generative AI strategy with their current digital and AI strategies, enhance employee skills, and promote experimentation across their organisations, supporting staff in the identification of scalable use cases for this disruptive technology.
How can we help?
With the introduction of generative AI and other emerging technologies into the workplace, it is now more important than ever to ensure that workers have the right skills in place to leverage such technology and keep up with the pace of change. Organisations must also consider how such technology may impact their workforce plans and how roles will be impacted.
Our team can help you determine the skills required, assess current workers against these skills and develop a future-proof upskilling and workforce plan to ensure your organisation is well-placed to leverage such technology with minimal disruption to the operations and employee experience.
