Two in three business chiefs expect prof its to soar in year ahead
THE vast majority of top business executives around the world believe their profits will soar in 2024 as they look to make use of artificial intelligence (AI), a new survey has found.
The Ernst & Young (EY) quarterly survey of 1,200 company CEOs – including Irish business owners – asked the firms about their predictions, prospects, challenges and opportunities in the year ahead.
It found that a significant majority – 64% – expect higher revenue growth and profitability. More than 40% of global company chiefs said they will be prioritising the adoption of AI to drive efficiencies and improve business performance, while over three-quarters (76%) agree the technology will have little impact on revenue growth at this time.
The optimism comes despite an acknowledgement of a continued challenging economic environment, with three-quarters (76%) of company bosses surveyed expecting the global economy to continue to endure low or no growth and more than half (57%) forecasting an increase in the cost of business.
EY Ireland’s Graham Reid said: ‘Even though CEOs are expecting slower growth in the global economy, this hasn’t dampened their confidence. Mirroring trends that we are seeing here in Ireland, CEOs globally are seeking opportunities to drive efficiencies, transform their business for growth and harness the potential of AI. While Ireland’s economy has not been immune to global macroeconomic trends over recent years, businesses here – whether indigenous or multinational – have handled this uncertain trading environment remarkably well and are now looking ahead with confidence to the future.’
Mr Reid said many chief executives globally are revisiting their business transformation plans, scanning for investments and laying the groundwork for potential alliances.
He added: ‘Underpinning the rise in CEO confidence is a rush toward strategic transformation – 58% of CEOs surveyed are accelerating their business transformation agendas – a significant leap, almost tripling from 21% in July 2023.
‘In stark contrast, only 5% now report having no transformation plans, a fall from 37% in July 2023. Despite the bullish sentiment, CEOs are demonstrating pragmatism in their approach to business transformation. Primary focus areas include efficiency
‘Looking ahead with confidence’
enhancements and cost management strategies.
He added: ‘If 2023 was the year of transition as organisations grappled with a series of crises, 2024 is shaping up to be the year of action. With an acceptance that costs of doing business are unlikely to fall to pre-pandemic levels, we’re seeing a shift in how CEOs approach business transformation, balancing optimism with pragmatism and focusing on efficiency.’