This year’s KPMG CEO Outlook provides a revealing view into the objectives, challenges, and strategies at the top of the agenda for technology and telecommunications CEOs. In 2024, technology and telecommunications CEOs are generally optimistic about the future growth of their industries, the economy and their companies.
The KPMG 2024 Technology and Telecommunications CEO Outlook, part of the 10th edition of the KPMG 2024 CEO Outlook, is compiled from the views of 240 technology and telecommunications chief executive officers, which was conducted between 25 July and 29 August 2024, providing unique insight into the mindset, strategies, and planning tactics of CEOs.
Key Challenges:
- The top three challenges for technology and telecommunications CEOs include the adoption of Gen AI (55 %), economic uncertainty (49%) and geopolitical complexities (49 %).
- Ethical concerns are the biggest barrier when implementing Gen AI, with cost of living and cyber security among some of organizations’ biggest threats to growth
- Sector CEOs cite the challenge of deglobalization, driven in large part by the decoupling of global value chains
“Technology and telecommunications CEOs are realistic about the challenges facing their companies, but they also maintain optimism about prospects for their industry. Not surprisingly, Gen AI is recognized across technology and telecommunications as a critical driver of long-term growth and profitability, but sector CEOs also acknowledge the risks involved. In addition, they recognise, that ESG initiatives will become increasingly important to support net-zero goals, the workforce, company stakeholders and society at large. Companies that have unrelenting focus on long-term, sustainable growth, enabled by strategic planning across all functions of a company are the ones that will surge ahead” said Purushothaman KG, Partner and Head, Technology Transformation and Sector Head, Telecom, KPMG in India.
Economic Outlook
- Technology and telecommunications CEOs are overall optimistic about the prospects for growth in their industries, their companies and the economy at large.
Gen AI
- Support for Gen AI remains a key issue across technology and telecommunications with as many as 78% reporting it as a top investment priority
- In addition, most indicate that leadership has a clear view on how Gen AI will disrupt current business models and create new opportunities (76 percent)
- (77 percent) say their leadership teams have clarity on how Gen AI will benefit their organizations and create a competitive advantage
- 75 percent feel that a cybersecurity-centric culture is critical to AI integration across organizations, only about one in two (53 percent) remain confident that cybersecurity measures can safeguard against rapid AI advancement
- As for risks and concerns, CEOs believe that ethical challenges (66 percent) and a lack of regulation (53 percent) are major barriers in the implementation of Gen AI.
- 65% CEOs are placing more capital investment in buying new technology in 2024
Workforce
- 65 percent of technology and telecommunications CEOs prefer an in-office workplace
- Knowledge, skills and working relationships acquired over the years must now be supplemented and eventually replaced by the next generation of workers.
- 62% expect labor market shifts, such as an aging workforce to impact labor dynamics, at least to a moderate degree
ESG
- Our survey results suggest that technology and telecommunications CEOs strongly support ESG strategies and are increasingly optimistic about their company’s ability to reach ESG goals
- More than 80% feel that their companies, ESG priorities should include skill development, engaging with local communities and attempting to address the impact of political conflict and climate change
- About 86% believe that, as business leaders, they have a responsibility to drive greater social
- mobility
- A majority (75%) express confidence in their ability to meet new reporting standards
- A total of (70%) are willing to take a stand on a politically or socially contentious issue, even if the board was concerned about the risks of taking a public stance
- Half (50 %) believe that ESG investments can provide a significant rate of return over the course of three to five years
