Almost half of global chief executives fear that their business models may become obsolete within the next decade due to the rapid advancements in technology, such as artificial intelligence (AI), and the increasing pressures brought about by climate change, according to a recent survey conducted by PricewaterhouseCoopers (PwC). The survey, which included 4,702 company leaders from around the world, revealed that 45% of CEOs believe their businesses could fail within the next 10 years unless they adapt to these transformative forces. This figure marks an increase from the 39% reported in a similar survey conducted in 2023.
The survey findings indicate a growing sense of urgency among business leaders, as they recognize the need for fundamental reinvention to ensure their long-term survival. Bob Moritz, global chair of PwC, stated at the World Economic Forum in Davos, Switzerland, where the survey was unveiled, that CEOs are now less optimistic about their revenue prospects and are increasingly focused on grappling with the challenges posed by AI and climate change.
Moritz further emphasized the importance of countries investing in better infrastructure and clean energy to support the growing demand for AI. He pointed out that there is a lack of sufficient computing power to fully leverage the potential of AI, and without economic growth and an increase in energy supply, the potential benefits of AI may elude us. Thus, in order to stay relevant and competitive, business leaders must adapt and navigate through these technological and environmental shifts.
Interestingly, the survey also found that CEOs are becoming less concerned about macroeconomic challenges. In fact, more than a third of the CEOs surveyed expect their workforce to grow by 5% this year, indicating a degree of confidence in future growth possibilities. This could be attributed to a shift in focus towards investing in new technologies and innovation, as well as adapting business strategies to align with sustainable practices and societal needs.
Moritz provided an example of how PwC, as a company, is working towards making smarter decisions to address climate change concerns. One area of focus is corporate travel, where efforts are being made to reduce emissions and cut costs. This means exploring more efficient and effective ways of traveling, as well as considering alternative modes of transportation and embracing virtual communication tools. Such actions illustrate the commitment of PwC towards minimizing its carbon footprint while enhancing operational efficiency.
In conclusion, the survey highlights the rapidly changing landscape in which businesses operate, driven by technological disruptions and climate pressures. Business leaders must embrace innovation, invest in new technologies, and adapt their business models to thrive in this evolving environment. Moreover, collaboration between governments, businesses, and other stakeholders is crucial in creating the necessary infrastructure and adopting clean energy solutions to support the rising demand for AI and address climate change challenges. Only by collectively addressing these issues can businesses hope to remain viable in the future.