Artificial intelligence (AI) is the top technology that CEOs believe will have a significant impact on their industry over the next three years, according to a recent survey of CEOs and senior executives by the global and research consulting firm.
“Generative AI will have a profound impact on business and operating models,” said Mark Raskino, Distinguished Vice President Analyst at Gartner. “However, the fear of missing out is a powerful driver of the technology market. AI is reaching a tipping point, and CEOs who haven’t yet invested are starting to worry that they’re missing out on something important to be competitive. “
The 2023 Gartner CEO and Senior Business Executive Survey was conducted from July 2022 to December 2022 among more than 400 CEOs and other senior business executives in North America, Europe, Asia Pacific, Latin America, the Middle East and South Industry, revenue and company size.
Half of CEOs see growth as top strategic business priority
“CEOs are hesitant when it comes to setting business priorities, but they are not standing still,” said Gartner Distinguished Vice President Analyst Kristin Moyer. “More than half of CEOs believe that 2023 will The recession, or recession, will be shallow and short, with surveys pointing to only modest increases in cash flow, capital and funding concerns.”
Despite the impact of these economic headwinds, half of CEOs see growth as their top strategic business priority over the next two years. Technology remains the top area of concern for CEOs, followed by workforce issues (see Figure 1).
“After three years of volatility, the CEO’s priorities are stabilizing,” Raskino said. “Executive leaders are looking at the aftermath of a time of pervasive crisis, seeing an era where talent, sustainability and next-level digital transformation will become levers for competitive performance.”
In fact, mentions of environmental sustainability increased by 25% compared to the previous year’s survey, making it the first time sustainability was among the top 10 priorities for CEOs. Gartner predicts that by 2026, environmental sustainability will become a higher CEO strategic business priority than technology-related categories.
Inflation Drives Shift in Customer Behavior
Twenty-two percent of CEOs ranked inflation as the most disruptive business risk, and nearly a quarter cited greater price sensitivity as the biggest shift they expect in customer expectations this year. However, raising prices remains the top inflation action CEOs take (44%), followed by cost optimization (36%) and productivity, efficiency and automation (21%).
“The concern is that CEOs don’t seem to be paying as much attention to productivity as they do in times of inflation,” Moyer said. “This may be due to wishful thinking that inflation will not be a persistent feature of the economic landscape. CEOs must employ automation to redesign methods, processes and products to improve efficiency, rather than passing cost increases on to customers.”
Attracting and retaining talent is a top workforce priority
When asked about the business impact of various risks, 26 percent of CEOs ranked talent shortages as the most disruptive risk to their organization. Attracting and retaining talent is by far the top priority for CEOs. Worries about pay are the biggest shift in employee and potential employee behavior expected by CEOs, followed by a desire for greater flexibility and remote or hybrid work.
“In an inflationary environment, the emphasis on compensation is not surprising, but in previous economic cycles, job losses have typically weakened the strength of the labor market,” Laskino said. – trade arab news agency