As we enter a new decade defined by transformation ascribable to geopolitical volatility, technological disruption, and shifting employee value propositions, the KMPG 2024 CEO Outlook report turned to CEOs for insights on the future of leadership and a comprehensive snapshot of the business landscape.

The 1.3k CEOs — whose companies have revenues exceeding USD 500 mn — come from diverse regions and industries, including technology, finance, manufacturing, and healthcare, shared key trends they believe provide perspective on the evolving challenges to come.

The report showed a drop in confidence. Conducted between 25 July and 29 August of this year, the survey showed a significant shift in CEO’s confidence in the global economy in comparison to just a decade ago. In 2015, 93% of CEOs surveyed expressed optimism about the future of the business landscape, compared to this year, when only 72% felt the same — dropping a little over 2% y-o-y.

This decline reflects ongoing economic uncertainties, including inflation and geopolitical tensions. Nearly three-quarters of the polled CEOs now feel heightened pressure to secure sustainable growth for their organizations.

The biggest threats to growth: Supply chain disruptions and operational issues topped the list of most pressing threats to business growth over the next three years, surpassing concerns around cybersecurity and geopolitical instability. This highlights the evolving landscape of risks that CEOs must manage in their strategic planning.

64% of the CEOs indicated that they plan to invest in AI regardless of economic conditions. One of the most significant trends highlighted in the 2024 Outlook is the urgency surrounding the adoption of artificial intelligence, making it clear that leaders recognize its potential to enhance efficiency, innovation, and productivity. There are concerns about ethical implementation, as 61% of CEOs identified ethical challenges as a critical issue in AI adoption.

But only 38% of CEOs are confident that their workforce possesses the necessary skills to leverage AI effectively. This has caused upskilling teams and having them meet the demands of an increasingly digital landscape to become a key focus for leaders.

It looks like the end of workplace flexibility. 83% of CEOs anticipate a full return to office within three years, a notable increase from 64% in 2023. 84% of male CEOs share this view, in comparison to only 78% of female CEOs, indicating a potential gender-based difference in perspectives on remote work. Younger CEOs also seem less keen, with 75% of CEOs aged 40-49 feeling strongly about the return to office in comparison to 87% aged 60-69.

ESG has become a new challenge. 24% of CEOs identified the risk of failing to meet environmental, social, and governance (ESG) expectations as a significant concern. 68% indicated they would take a stance in political or social issues and align their businesses with broader societal values. ESG priorities have shifted from being secondary concerns to integral business strategy that informs the performance of the company.

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