Nearly three-in-five CEOs optimistic about global economic outlook as they plan headcount increases and continued AI rollout: PwC 2025 Global CEO Survey

• Almost 60% of CEOs expect global growth to increase over the next 12 months, up from 38% last year and 18% two years ago
• 42% expect to increase headcount over the next 12 months – more than twice the number expecting to decrease it. CEOs more likely to say GenAI led to headcount increases than decreases
• CEOs are seeing tangible impacts from GenAI: 56% reported efficiency gains, while one-third saw profitability (34%) and revenue (32%) increases
• 42% of CEOs believe their company will not be viable beyond the next 10 years without reinvention, as nearly four in ten say they have begun competing in new sectors in the last five years
• Climate related investments six times more likely to have resulted in increased revenue than decreased revenue

DAVOS, Switzerland, Jan. 21, 2025 /PRNewswire/ -- Almost 60% of CEOs around the world expect global economic growth to increase over the next 12 months, according to PwC's 28th Annual Global CEO Survey, launched today during the World Economic Forum Annual Meeting.

The report, which surveyed 4,701 CEOs across 109 countries and territories, also finds that 42% expect to increase headcount by 5% or more in the next 12 months – more than double the proportion who expect headcount decreases (17%), and up from 39% last year. The percentage is highest (48%) among smaller companies (less than US$100 million) and those in the technology (61%), real estate (61%), private equity (52%) and pharma and life sciences (51%) sectors.

While CEOs are optimistic about the global economy, macroeconomic volatility (29%) and inflation (27%) nevertheless remain the top risks for the year ahead cited by CEOs globally, but with clear differences between regions. Geopolitical conflict is seen as the biggest risk in the Middle East (41%) and Central and Eastern Europe (34%). In Western Europe, cyber risk (27%) is a marginally higher concern than a lack of skilled workers (25%) and inflation (24%) – with macroeconomic volatility topping the list at 29%. Inflation is the top concern in Africa (39%), while North America and Asia-Pacific prioritise risks largely in line with the global averages.

Mohamed Kande, Global Chairman, PwC, said:

"This year's CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must reinvent how they create, deliver and capture value. Emerging technologies such as GenAI, shifts in geopolitics, and the climate transition are all revolutionising how the economy works. New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model."

The reinvention imperative

Consistent with the last two years, four in ten (42%) CEOs believe their company will not be viable beyond the next decade if it continues on its current path. Among those that do not expect to last without significant change, 42% cite shifts in the regulatory environment as having the biggest influence on their economic viability.

But CEOs are taking action – across all sectors, almost two-thirds (63%) have taken at least one significant action to change how their company creates, delivers, and captures value in the last five years, with CEOs that have taken more reinvention actions in the last five years reporting higher profit margins in the last 12 months.

As companies look to reinvent their business models, almost four in ten (38%) say they have begun competing in at least one new sector in the last five years – with about one-third (34%) noting this has represented over 20% of company revenue over this period.

However, the pace of reinvention is slow and a large majority of companies lack agility. When it comes to moving budget and people between projects and business units, around half of CEOs told us that they reallocate 10% or less of financial and human resources from year to year. More than two-thirds reallocate less than 20%. On average, only 7% of revenue over the last five years has come from distinct new businesses.

CEOs are optimistic about the potential of GenAI, but are looking for stronger results

CEOs are reporting tangible impact from GenAI. More than half (56%) report seeing efficiency gains in their employees' time over the last 12 months, and one-third saw revenue (32%) increases.

However, performance is somewhat below expectations expressed last year. In 2024, 46% said they expected to see profitability improvements. A year later, when we asked if they had seen those gains, only 34% said they had. Trust in AI remains a hurdle to more widespread adoption. Only a third of CEOs said they have a high degree of trust in embedding the technology into key processes in their company.

Despite this, optimism about GenAI's impacts on profitability is slightly up on last year – with 49% expecting an increase in the next 12 months. Roughly half (47%) expect to integrate AI (including GenAI) into their technology platforms over the next three years, 41% plan to integrate it into core business processes and 30% have plans for new products and service development.

While it is early days, there is nothing in our data to suggest a widespread reduction in employment opportunities across the global economy as a result of GenAI. More CEOs say GenAI has increased headcount than decreased it (17% v 13%).

Matt Wood, Global & US Commercial Technology & Innovation Officer (CTIO), PwC, said:

"This year's survey shows a more mature view of GenAI in the enterprise. CEOs are convinced it has the power to unlock new opportunities – in fact they are more optimistic than last year. At the same time, they are more aware of the challenges they need to navigate to realise that value. They see the importance of building trust into the way their AI systems are designed, and for now are prioritising integration into core business processes. It is important that they also see the potential GenAI has to generate growth through new products and services and create value in new ways."

Climate investments are paying off

As the climate transition continues to impact businesses, CEOs continue to take action. When we asked CEOs to take stock of the financial impact of climate related investments over the last five years, we found that these moves were six times more likely to have resulted in increased revenue (33%) than decreased revenue (5%). In addition, nearly two-thirds of CEOs reported that climate related investments had either reduced costs or had no significant impact on costs.

However, challenges remain around initiating climate related investments: CEOs that made such investments cite regulatory complexity as the top factor (24%) inhibiting their companies' ability to initiate those investments, as opposed to lower returns on investment (18%) or lack of buy-in from management or the board (6%).

Carol Stubbings, Global Chief Commercial Officer, PwC, said:

"Three-plus decades of digitisation have started to break down formerly impermeable boundaries between sectors, while the combined impact of the climate transition, AI, and other megatrends will hasten the process of reconfiguration. This survey shows that business leaders are facing this future with a combination of optimism about the economy and realism that business needs to fundamentally reinvent how it creates value if it is to thrive in the future."

Notes to Editors

About the 28^th Annual PwC Global CEO Survey

PwC surveyed 4,701 CEOs across 109 countries and territories from 1 October through 8 November 2024. The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. The full findings can be accessed on pwc.com/ceosurvey.

About PwC

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