TheCorporateCounsel.net

KPMG recently released the latest edition of its CEO Outlook analyzing insights shared by over 1,300 CEOs at large companies globally. The survey shows that, in today’s environment, CEOs are primarily focused on “anticipating and staying ahead of compound volatility…strategically allocating capital to address near-term risks such as cyber and geopolitics that can cause abrupt business disruption in the short term, while making long-term investments in generative artificial intelligence and mergers and acquisitions to spur future growth.” KPMG coined this term “compound volatility” which it describes as “the combination of near-term risks to growth and the structural changes to the US economy that raise the cost of doing business with little margin for error on strategy development and execution.”

Here are some other highlights, summarized in KPMG’s Directors Quarterly:

– 78% of CEOs were confident in their company’s growth prospects over the next three years
– Top risks identified were cost of living, cybercrime, cybersecurity and talent
– 70% of CEOs identified GenAI as a top investment priority, particularly in IT, sales and marketing and finance and accounting
– 72% said GenAI won’t significantly impact the number of jobs but will require upskilling

One of the biggest changes in survey responses year-over-year relates to return-to-office plans. This year, almost 80% of CEOs envisioned a full return to office over the next three years (up from only 34% saying so a year ago).

– Meredith Ervine