CEOs Worried About Climate Change and AI Impacts, PwC Survey Finds
According to a recent survey conducted by PwC, CEOs are increasingly concerned about the effects of climate change and artificial intelligence (AI) on their businesses. The survey of over 4,700 CEOs worldwide revealed that a growing number of executives believe major overhauls are necessary for their companies to survive in the coming decade.
While optimism about the global economy has increased to 38%, up from 18% last year, CEOs remain worried about the future. The survey shows that 45% of respondents fear their businesses may not be viable in ten years without reinvention, compared to 39% in the previous year.
AI is both seen as an opportunity and a concern. Almost three-quarters of CEOs acknowledged that it would significantly change the way their companies create, deliver, and capture value in the next three years. However, 69% expressed concerns about the lack of skills among workers and the need for training to leverage this technology effectively. Additionally, cybersecurity risks and misinformation were cited as potential drawbacks.
The issue of climate change also posed significant challenges. Nearly a third of CEOs believed that the climate transition would impact how they operate within the next three years. While 77% of executives have implemented changes to improve energy efficiency, only 45% indicated progress in incorporating climate risks into financial planning.
The survey results come amidst the gathering of business leaders, politicians, and activists at the World Economic Forum’s annual meeting in Davos, Switzerland. Discussions on the intersection of AI, climate change, and the global economy are expected to feature prominently during the event.
In light of these findings, CEOs stressed the need for transformation, such as the accelerated deployment of generative AI and addressing climate-related challenges. However, they face hurdles such as regulatory constraints and the need for skilled workers.
The survey’s insights emphasize the importance of businesses adapting to the changing landscape and embracing innovation. Richard Edelman, CEO of public relations firm Edelman, noted that acceptance of innovation relies on considering the welfare of workers affected by job changes and facilitating direct communication between scientists and the public.
As AI adoption and climate action continue to shape the business landscape, CEOs must navigate these challenges while ensuring long-term sustainability and success. The PwC survey serves as a wake-up call for businesses to actively prepare for the impact of these transformative forces.
