KPMG Survey: 68% of CEOs Expect Their Companies To Expand Over the Next 3 Years

KPMG’s latest CEO survey uncovers an optimistic outlook among global business leaders, with a strong focus on growth despite economic challenges. The report indicates that private company CEOs are prioritizing investments in Generative AI, positioning it as their key driver for future success.

According to the survey, 68% of CEOs express confidence in their companies’ ability to expand over the next three years. Nearly half anticipate a growth rate of up to 2.9% during this period. Generative AI has emerged as the top investment priority for 62% of respondents, underscoring its significance in shaping the future of business.

The survey, which gathered insights from over 1,300 CEOs worldwide, also highlights the role of mergers and acquisitions (M&As) as a strategic focus, with 26% of leaders identifying it as a primary growth method.

David Rowlands, KPMG’s Global Head of AI, reflected on the evolution of AI, noting that when the survey began a decade ago, AI was rarely mentioned. Today, it has become central to business discussions. The data shows that 64% of CEOs plan to invest in AI technology, regardless of the economic landscape.

However, only 38% of CEOs feel assured that their workforce possesses the necessary skills to maximize AI’s potential, revealing a growing concern over talent management in an era of rapid technological advancement. In fact, 33% of CEOs cite employee retirement and the scarcity of skilled labor as significant operational constraints. Nonetheless, 92% of respondents intend to increase their headcount within the next three years, suggesting a proactive approach to workforce challenges.

The survey further reveals a shift in CEO confidence regarding the global economy. While 72% of respondents remain hopeful, this is a notable decline from the 93% optimism rate recorded in 2015. The top concerns for CEOs now center around supply chain disruptions and operational inefficiencies, issues that have overtaken cybersecurity and geopolitical risks as the most pressing challenges.

Bill Thomas, KPMG’s Global Chairman, and CEO emphasized that future success will belong to leaders who set bold strategies and invest in the right technologies and talent to navigate the fast-paced, ever-changing global environment.

Environmental, social, and governance (ESG) issues also emerged as critical concerns, with CEOs noting the growing political and social polarization surrounding topics like climate change and social mobility. John McCalla-Leacy, KPMG’s Head of Global ESG, pointed out that these challenges are adding new pressures for business leaders who are already dealing with complex demands.

The report additionally suggests a return to pre-pandemic work practices, with 83% of CEOs expecting a full return to the office within the next three years, a significant increase from 64% in 2023. Additionally, 87% of CEOs indicated they are likely to reward employees who make an effort to work in the office through promotions, salary increases, or favorable assignments.

Nhlamu Dlomu, KPMG’s Global Head of People, emphasized the importance of cultivating and supporting talent through a flexible working environment. She noted that the leaders who succeed in the future will be those who understand the evolving expectations of today’s workforce, fostering a ‘social contract’ that promotes agility and adaptability in work arrangements.

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