KPMG CEO Outlook 2024
KPMG CEO Outlook 2024
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KPMG CEO Outlook 2024: 72% of CEOs Confident in Global Economy in 2024, Top 3 Risks are Supply Chain, Operational Issues & Cyber Security, 92% of CEOs Expect Headcount Increase in Next 3 Years, 83% of CEOs Expect Full Return to Office Within 3 Years, 76% of CEOs Anticipate AI Will Not Reduce Jobs in Organizations, 76% of CEOs Willing to Divest Profitable Business if Damaging Reputation for ESG Concerns  

11th October 2024 | Hong Kong 

KPMG has released the KPMG CEO Outlook 2024, providing key insights on geopolitics, return-to-office, ESG and generative AI from 1,325 global business leaders with revenues > $500 million.  CEOs Confidence in Global Economy (Optimistic) in 202472% of CEOs.  Top 3 Risks in 2024Supply Chain, Operational Issues, Cyber Security.  Top 10 Risks in Last 10 Years (2015 to 2024) – Cyber Security, Operational Issues, Emerging / disruptive technology, Geopolitics / political uncertainty, Environmental / climate change, Supply Chain, Regulatory concerns, Strategic risk, Reputational / brand.  CEOs Expecting Headcount Increase in next 3 years in 2024 – 92%.  CEOs Expect full return to office within 3 years – 83%.  Top 3 Responses by CEOs on Artificial Intelligence – AI will not reduce jobs in organizations, Will invest in AI regardless of economic conditions, AI Return on investment (ROI) is unlikely within 3 to 5 years.  Top 3 Responses by CEOs on ESGs – Willing to divest profitable business if damaging reputation, Have adapted climate-related language & terminology to meet stakeholders needs, Would take a political or social contentious issue, even if Board raised concerns.  See below for key summary & findings | View report here

“ KPMG CEO Outlook 2024: 72% of CEOs Confident in Global Economy in 2024, Top 3 Risks are Supply Chain, Operational Issues & Cyber Security, 92% of CEOs Expect Headcount Increase in Next 3 Years, 83% of CEOs Expect Full Return to Office Within 3 Years, 76% of CEOs Anticipate AI Will Not Reduce Jobs in Organizations, 76% of CEOs Willing to Divest Profitable Business if Damaging Reputation for ESG Concerns “  

 



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KPMG CEO Outlook 2024: 72% of CEOs Confident in Global Economy in 2024, Top 3 Risks are Supply Chain, Operational Issues & Cyber Security, 92% of CEOs Expect Headcount Increase in Next 3 Years, 83% of CEOs Expect Full Return to Office Within 3 Years, 76% of CEOs Anticipate AI Will Not Reduce Jobs in Organizations, 76% of CEOs Willing to Divest Profitable Business if Damaging Reputation for ESG Concerns  

KPMG CEO Outlook 2024
KPMG CEO Outlook 2024

KPMG CEO Outlook 2024

Summary

  1. Profile – 1,325 global business leaders with revenues > $500 million
  2. CEOs Confidence in Global Economy (Optimistic) in 202472% of CEOs
  3. CEOs Confidence in Global Economy (Optimistic) in 2023 – 73%
  4. CEOs Confidence in Global Economy (Optimistic) in 2020 – 62%
  5. CEOs Confidence in Global Economy (Optimistic) in 2015 – 93%
  6. Top 3 Risks in 2024Supply Chain, Operational Issues, Cyber Security
  7. Top 10 Risks in Last 10 Years (2015 to 2024) – Cyber Security, Operational Issues, Emerging / disruptive technology, Geopolitics / political uncertainty, Environmental / climate change, Supply Chain, Regulatory concerns, Strategic risk, Reputational / brand
  8. CEOs Expecting Headcount Increase in next 3 years in 2024 – 92%
  9. CEOs Expecting Headcount Increase in next 3 years in 2023 – 81%
  10. CEOs Expecting Headcount Increase in next 3 years in 2020 – 93%
  11. CEOs Expecting Headcount Increase in next 3 years in 2015 – 78%
  12. CEOs Expect full return to office within 3 years – 83%
  13. Top 3 Responses by CEOs on Artificial Intelligence – AI will not reduce jobs in organizations, Will invest in AI regardless of economic conditions, AI Return on investment (ROI) is unlikely within 3 to 5 years
  14. Top 3 Responses by CEOs on ESGs – Willing to divest profitable business if damaging reputation, Have adapted climate-related language & terminology to meet stakeholders needs, Would take a political or social contentious issue, even if Board raised concerns

 

 

KPMG CEO Outlook 2024

1) CEOs Outlook

CEOs Profile – 1,325 global business leaders with revenues > $500 million

CEOs Confidence in Global Economy (Optimistic):

  • 2015 – 93% of CEOs
  • 2016 – 80%
  • 2017 – 65%
  • 2018 – 67%
  • 2019 – 62%
  • 2020 – 68%
  • 2021 – 60%
  • 2022 – 71%
  • 2023 – 73%
  • 2024 – 72%

Top 3 Risks in 2024:

  1. Supply Chain
  2. Operational Issues 
  3. Cyber Security

Top 10 Risks in in Last 10 Years (2015 to 2024):

  1. Cyber Security
  2. Operational Issues 
  3. Emerging / disruptive technology
  4. Geopolitics / political uncertainty
  5. Environmental / climate change
  6. Supply Chain
  7. Regulatory concerns
  8. Strategic risk
  9. Reputational / brand

 

2) CEOs on People Management 

CEOs Expecting Headcount Increase in next 3 years:

  • 2015 – 78% of CEOs
  • 2016 – 96%
  • 2017 – 95%
  • 2018 – 92%
  • 2019 – 93%
  • 2020 – 93%
  • 2021 – 88%
  • 2022 – 79%
  • 2023 – 81%
  • 2024 – 92%

CEOs expect full return-to-office within 3 years:

  • 2023 – 64% of CEOs
  • 2024 – 83%

CEOs expect full return-to-office within 3 Years (by age group):

  • Age 60 to 69 – 87%
  • Age 50 to 59 – 83%
  • Age 40 to 49 – 75%

CEOs expect full return-to-office within 3 Years (by gender):

  • Male – 84% of CEOs
  • Female – 78%

 

 

3) CEOs on AI & ESG

CEOs on Artificial Intelligence:

  1. Anticipate AI will not reduce jobs in organizations76%
  2. Will invest in AI regardless of economic conditions – 64%
  3. AI Return on investment (ROI) is unlikely within 3 to 5 years – 63%
  4. Ethical challenges on AI – 61%
  5. Generative AI integration have triggered rethink of skills required for entry-level roles – 58%
  6. Lack of AI regulation – 50%
  7. Insufficient AI technical skills & capabilities – 48%
  8. Employees have right skills to fully leverage AI benefits – 38%
  9. AI potential to increase efficiency & productivity – 16%
  10. Upskill workforce for future readiness – 13%

CEOs on ESG:

  1. Willing to divest profitable business if damaging reputation76%
  2. Have adapted climate-related language & terminology to meet stakeholders needs – 69%
  3. Would take a political or social contentious issue, even if Board raised concerns – 68%
  4. Not prepared to withstand shareholder scrutiny – 66%
  5. Greatest barrier to climate ambitions is complexity of supply chain decarbonization – 30%

 

KPMG 2024 CEO Outlook

The 10th edition of the KPMG CEO Outlook, conducted with 1,325 CEOs between 25 July and 29 August 2024, provides unique insight into the mindset, strategies and planning tactics of CEOs.  All respondents have annual revenues over US$500M and one-third of the companies surveyed have more than US$10B in annual revenue. The survey included leaders from 11 markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the United Kingdom and the United States) and 11 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecommunications).




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