ARTHUR-D-LITTLE
Looking beyond current turbulence, the CEOs of the world’s largest companies are increasingly optimistic about future growth, with 66% highly positive about the global outlook over the next three to five years. This is the headline finding of the second annual Arthur D. Little (ADL) CEO Insights Study, which was launched today. The study found that whatever their strategy or sector, global CEOs are increasing their growth investments.
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The second annual Arthur D. Little CEO Insights Study was launched today. (Graphic: Business Wire)
Artificial intelligence (AI) is seen as crucial to growth, with 96% of CEOs having already deployed AI in some form, although, demonstrating the early stages of its adoption, just 13% have a compelling, enterprise-wide AI strategy in place.
Importantly, CEOs understand that to get the best from AI, they need to focus on their people. Fifty-nine percent say they have a strong or very strong need to reskill their workforces to meet changing requirements, up from 13% in 2023. This trend is particularly pressing in sectors such as manufacturing, with a 63% increase in the need to reskill, and financial services (+55%).
Alongside AI and reskilling, the third growth focus for CEOs is environmental, social, and governance (ESG). Over three-quarters (77%) are embedding ESG holistically across their organization, with CEOs believing its impact on growth strategies will increase by 26% over the next three years.
Attitudes and plans do vary between sectors and regions. Seventy-eight percent of Asian CEOs forecast positive growth over the next three to five years, compared to 55% of those in South America, for example. Turning to AI, 69% of financial services CEOs had a company wide strategy or strategic view in place, in contrast to 56% of energy & utility companies.
Francesco Marsella, Managing Partner and Global Leader of the Growth and Transformation Practices at Arthur D. Little, comments: “Given today’s business and geopolitical turmoil, it is extremely heartening to see that the CEOs of the world’s biggest companies are positive for the future. The ADL 2024 CEO Insights Study shows that while they accept that conditions will remain volatile and turbulent, they believe a combination of resilient operating structures, clear strategies, AI innovation, and reskilling their people will enable their businesses to thrive in a sustainable future.”
Ignacio García Alves, Chairman and Chief Executive Officer at Arthur D. Little, comments: “The world faces a range of pressing challenges, intensified by current turbulence. Innovation is central to overcoming these issues. Our 2024 CEO Insights Study shows that CEOs agree and are focusing on bringing together AI and human skills to innovate and move forward to ensure future success for their businesses and society as whole.”
The Arthur D. Little 2024 CEO Insights Study interviewed nearly 300 global CEOs leading companies with a turnover of more than $1 billion. Thirty-nine percent headed businesses with annual revenues of over $10 billion. Study respondents are split between key industries and geographies to give unrivaled insight into the minds of those running the world’s biggest organizations.
The full report, including recommendations from ADL, can be downloaded here: https://tinyurl.com/32czp9y9
For further information, please visit www.adlittle.com
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