Why CEOs fear their companies won’t survive as the challenges of AI and climate change grow

Participants walk at the headquarters during the 54th annual meeting of the World Economic Forum in Davos, Switzerland, January 16, 2024. REUTERS/Denis Balibouse (DENIS BALIBOUSE/)

Increasingly executives they feel better with World economybut a growing number he doesn’t think his companies will survive the next decade without a thorough review due to the pressure of the climate change and technology such as artificial intelligence (AI), according to a new survey of CEOs conducted by one of the world’s largest consulting firms, PwC.

The survey, conducted among more than 4,700 CEOs around the world, was made public on Monday, as business elites, political leaders and activists attended the annual meeting of the World Economic Forum in Davos (Swiss).

He 38% of executives were optimistic about the strength of the economy, in the face of the 18% last year, when the world was plunged into a high inflation, weak growth, rising interest rates and other problems.

CEOs’ expectations of economic decline have fallen to Four. Five% from the 73% last year, an unprecedented number, and fewer consider that their company is highly exposed to the risk of geopolitical conflicts, according to the PwC Global CEO Survey. And this despite the wars in Ukraine and the Middle Eastincluding disruptions to global trade by attacks of the Houthi rebels from Yemen to commercial vessels in the Red Sea.

The Galaxy Leader cargo ship is escorted by Houthi ships in the Red Sea in this photo released November 20, 2023. Houthi Military Media/Handout via REUTERS/File
The Galaxy Leader cargo ship is escorted by Houthi ships in the Red Sea in this photo released November 20, 2023. Houthi Military Media/Handout via REUTERS/File (HOUTHI MILITARY MEDIA/)

Even with the economic outlook improving, the challenge is nowhere near over, as the world Bank said last week that he hopes the world economy slows down for the third consecutive year in 2024.

Executives, for their part, felt worse about the prospects for their companies’ ability to weather major changes. The survey shows that at Four. Five% of those surveyed worry that their companies will not be viable in a decade if they do not reinvent themselves, compared to the 39% from last year.

CEOs say they are trying to make changes, but they run into regulation, lack of worker skills, and other problems.

“Whether it is accelerating the deployment of generative AI or building your business to address the challenges and opportunities of the climate transition, this is a year of transformation,” he said in a statement. Bob Moritzglobal president of PwC, formerly known as PricewaterhouseCoopers.

Processor integrated circuit with lights that represent the operation of artificial intelligence.  Central element in the development of computers and current computing.  (Illustrative image Infobae)
Advanced microchip with AI inscription illuminates the future of technology and computing. LED lights symbolize the active neural connection of artificial intelligence, emulating complex computing processes on a computer. (Illustrative image Infobae)

Artificial intelligence was seen as both a way to streamline business operations and a weakness. Nearly three-quarters of executives stated that “will significantly change the way your company creates, delivers and captures value in the next three years,” according to PwC.

More than half of CEOs said AI will improve their products or services, but 69% He noted that his workers needed training to acquire the skills necessary to use technology Developing. They were also concerned about the possibility that AI increases the risks of cybersecurity and disinformation.

Organizers of the Davos meeting warned last week that the threat posed by AI-driven disinformation, such as synthetic content creation, is biggest global threat short term.

Another global survey released around Davos, the Edelman Trust Barometer from public relations firm Edelman, claims that innovation is being mismanaged and increasing Polarizationespecially in the western democracieswhere people with right-wing beliefs are much more likely than those with left-wing beliefs to resist innovation.

“Innovation is only accepted if there is a sense that we are looking at the big picture of how we deal with people whose jobs are going to change, how scientists are going to talk directly to people so that they understand it,” said the monday to The Associated Press Executive Director Richard Edelman. “And finally, that in one way or another, AI is affordable and makes people’s lives easier.”

The human race had to start with just a handful of individuals after the bottleneck caused by climate changes.  (Illustrative Image Infobae).
The human race had to start with just a handful of individuals after the bottleneck caused by climate changes. (Illustrative Image Infobae).

The online survey – which again showed that companies are the most trusted institution among governments, the media, science and non-governmental organizations – collected responses from more than 32,000 respondents in 28 countries between the November 3 and 22.

Similar to AI, the PwC survey shows that the climate transition is both an opportunity as a risk. A growing number of CEOs – almost a third – say that climate change is expected to change the way they do things over the next three years.

More than three-quarters of executives said they had initiated or completed changes to increase energy efficiency, but only Four. Five% noted that it has made progress in considering climate risks in financial planning.

The PwC survey of 4,702 CEOs from 105 countries and territories was conducted between October 2 and November 10.

(With information from AP)

Source-www.infobae.com