Despite sky-high borrowing costs and economic uncertainty, America’s CEOs are more confident than they were a year ago, a lot more in fact, 77% this year vs. 34% in 2022, according to a new survey released by KPMG on Thursday.
“American and global businesses, and particularly in the U.S., have been very, very resilient. The recession that was forecast some time ago hasn’t really arisen yet. You could argue there have been some rolling sector recessions, but not the macro recession that everyone expected,” KPMG CEO Paul Knopp told FOX Business.
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Even with economic headwinds, the race to dominate and maximize artificial intelligence with investments is a top priority for 72% of CEOs, but more, 81%, worry that the lack of regulation may prevent their companies from fully maximizing profit and growth potential.
“There has been a call for more regulation because the concerns are clearly on the table from many business leaders, legislators, you name it, and the general public about ethical uses of generative AI and about safe uses of generative AI,” Knopp said.
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Still, a deeper dive into the survey’s numbers show these same CEOs, 80%, overwhelmingly share concerns that include the cost of living. While inflation has abated from its peak 9.1% in June 2022 to 3.7% in August, certain costs are still rising.
“The natural forces behind higher labor costs are continuing to fuel some inflationary pressure. Secondly, the cost around commodities, and in particular energy costs, will remain elevated in all likelihood and in their food costs because of climate impacts,” Knopp added.
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Willing to offer incentives
And with the work-from-home trend firmly in place or the hybrid two to three days in the office, even with the worst of the pandemic behind us, 62% of CEOs realize this is not the ideal model for growth, up from 34% in 2022. Many hope to see more workers return in the next three years.
“I think what that tells us is that business leaders believe that their organizations will be more productive in the future if employees are in person more, collaborating in person,” Knopp said while adding that “90% indicated they were willing to offer incentives for employees to be back in the office.”
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KPMG surveyed more than 1,300 CEOs at large global companies, with 400 being based in the U.S.