PwC: Irish CEOs optimistic about this year but worry about viability in coming decade
Irish CEOs are optimistic about this year, but are warning that over a quarter of all their firms won’t be financially viable 10 years from now, due to costs entailed in investing in artificial intelligence (AI) and preparing for climate change.
That is according to the annual survey of CEOs by PwC, which canvassed 121 top bosses as part of a weighted global survey undertaken in 105 countries and territories late last year.
In Ireland, optimism about the course of the economy in the short term was rising even as CEOs worried about inflation, potential further shocks to the global economy, and the risks of cyberattacks. According to the survey:
However, so-called megatrends, which include generative AI and preparations for climate change, mean that over a quarter of Irish CEOs fear about their businesses over the next decade,
“Nearly one in three, or 28%, of Irish CEOs said that they do not believe their current business will be viable in a decade if it continues on its current path — up from 21% in 2023,” the survey reported.
“While 94% of Irish CEOs are confident about their own company’s prospects for revenue growth over the next three years, just half of these are extremely confident, likely reflecting the external uncertainties and disruption they need to manage,” the survey found.
PwC Ireland managing partner Enda McDonagh said that, due to “the underlying strength of our economy, the survey highlights that more Irish business leaders are confident in Ireland’s economic growth compared to this time last year”.
“Confidence in their own organisation’s revenue growth is high, reflecting resilience in the face of external disruption. However, this year’s survey data suggests a high degree of CEO uncertainty ahead, but CEOs are taking action,” Mr McDonagh said.
“Last year, 21% of Irish CEOs were not confident about the sustainability of their business models within 10 years if they continued on their existing path,” he said. “This year, that figure rose to 28% suggesting that the need for continuous reinvention of business models will be a new norm for CEOs
“Framed in the context of this complexity and the increasing pace of change, more and more business leaders are acknowledging the need to reinvent their business for sustained success,” the survey found.