Many believe that we are living through a new industrial revolution. In fact, the technological revolution of generative AI and the pressures that issues such as climate change bring to the fore are beginning to shape and transform the industrial fabric.
This is what emerges from an interesting report by PwC, “Annual Global CEO Survey”, in which 4,702 CEOs from around the world were interviewed. In this article, we will focus on the topic of AI according to CEOs: how it is perceived and how it will change their reality in the coming years.
According to the PwC report, generative AI is expected to have a rapid pace of adoption and a great potential in changing the game. Two out of three interviewees expect that AI can improve the quality of their products/services in the next year, while one out of two believes that AI can simplify and optimize the relationship with stakeholders.
Looking ahead to the next three years, 68% of CEOs think that AI will increase the competitiveness of their company, and 70% believe that AI will radically change the way their company creates value.
When asked about the extent to which AI will increase or decrease company performance, CEOs are very optimistic. 64% believe that AI can increase workforce efficiency, 59% believe that it can increase CEO efficiency, and 46% believe that it can increase profitability (while 47% believe that there will be no change greater than 5%)
However, the adoption of AI in such a short time is not all sunshine and roses. There are some aspects that concern CEOs. One primary concern is the workforce transformation anticipated with the adoption of AI. A quarter of CEOs predicts a reduction in company staff of at least 5% by 2024 due to the adoption of generative AI. This loss will be offset by the hiring of new roles, with a total of 39% of CEOs expecting a minimum 5% increase in workforce within the next 12 months.
There are also other issues closely linked to the tool: 64% of respondents believe that AI could increase cybersecurity problems, while 52% believe it could contribute to the proliferation of fake news and misinformation.
In summary, according to CEOs, AI is becoming increasingly important for businesses worldwide, and Generative AI is expected to significantly change the way companies generate value in the next three years. The trend is to view AI more as a benefit than a risk, but it is evident that rapid adoption and the lack of regulations (we discussed the first regulation in Europe here) make the tool potentially uncontrollable.
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