PwC survey reveals Canadian CEOs pessimistic about economy
by CM Staff
55% of Canadian CEOs expect domestic economic growth will decline this year, still relatively pessimistic when compared to 37% of global CEOs who expect economic growth in their country to decline.
TORONTO — Canadian CEOs are significantly more pessimistic than their global counterparts, according to PwC’s 27th Annual Global CEO Survey. 55% of Canadian CEOs expect domestic economic growth will decline this year, still relatively pessimistic when compared to 37% of global CEOs who expect economic growth in their country to decline.
The survey, which interviewed 4,702 CEOs across 105 countries and territories including 114 in Canada, explored the growing need for CEOs to reinvent their organizations and the results reveal opportunities to accelerate the pace of reinvention, leverage generative AI, and overcome barriers to change.
“We are operating in a continued poly-crisis environment, further complicated by tough economic headwinds. Therefore, it is not surprising that Canadian CEOs are more pessimistic than their global counterparts, when it comes to their outlook on economic growth,” said Nicolas Marcoux, CEO, PwC Canada. “While a soft recessionary landing maybe anticipated, CEOs find themselves under increasing pressure to reinvent their organizations.”
The AI opportunity
More Canadian CEOs than global CEOs have already started adopting Generative AI technology – 36% in Canada vs 32% globally. Significantly, for employees in Canada who are eyeing the technology with some trepidation, only 14% of Canadian CEOs believe it will decrease their headcount in the next 12 months – considerably lower than global respondents, at 25%.
Canadian CEOs say they expect to see quick adoption of Generative AI given the improvements it can make to an organization. Nearly 60% believe it will significantly change the way their company creates, delivers, and captures value in the years to come and 29% of Canadian CEOs believe it will increase revenue in the next 12 months. However, Canadian CEOs also believe that AI will increase risk within their business related to cybersecurity (66%), misinformation (52%), legal liabilities and reputational risks (47%), and more than half (55%) agree that AI will require significant upskilling of their workforce in the next three years.
“It is clear that Canadian CEOs are embracing new technologies such as generative AI and see real potential in terms of supporting their workforce and growing revenue. However, it will be important to close the skills gap so that companies can leverage AI to its fullest potential, while ensuring that employees do their part in mitigating the increased risks,” said Marcoux.
Opportunities for Reinvention
Reducing inefficiencies with the help of AI: Reduce inefficiencies that are weighing your organization down with investments in technologies like generative AI.
Engage with employees about reinvention: By giving employees an active role in reinvention and helping them feel safe and proposing new ways of doing things, CEOs can not only uncover opportunities to accelerate technological adoption but also find even more solutions to the inefficient processes holding companies back.
Anticipating emerging risks: By anticipating emerging risks and spotting hazards early on, CEOs can take the necessary steps to address the challenges facing the organization.
