In response to economic pressures and shifting business landscapes, leaders are focusing on AI investments and a return to in-office work, as outlined in the 2024 KPMG CEO Outlook, which also highlights workforce reskilling, operational efficiency, and ethical concerns around AI adoption. Despite concerns about a potential economic slowdown, CEOs remain committed to AI, recognizing its potential to enhance operational efficiency, drive innovation, and improve decision-making.
AI is no longer seen as just an advantage—it’s becoming a necessity for future business success. CEOs are viewing its adoption as a critical step to staying competitive and resilient in an increasingly complex market.
Concerns about the impact of AI on jobs remain prevalent in public discourse. However, CEOs are largely optimistic about AI’s potential to complement rather than replace human talent. In fact, 76% of CEOs believe that AI will not lead to a significant reduction in jobs within their organizations over the next three years. Instead, they anticipate a shift in the types of roles needed, with a focus on upskilling existing employees to work alongside advanced technologies.
While AI could automate certain tasks, the emerging view is that it will create new opportunities for innovation, human creativity, and productivity.
Simultaneously, the return-to-office debate is gaining traction among CEOs, signaling a move away from the hybrid work models that became widespread in past years. 83% of CEOs expect a full return to in-office work by 2027, a significant rise from 64% just a year earlier. This shift suggests that many leaders see in-person collaboration as essential for maintaining company culture, fostering innovation, and driving growth.
Yet, this return-to-office push also highlights a growing tension between leadership expectations and employee preferences. Many employees have embraced the flexibility and work-life balance offered by hybrid models, and reconciling these preferences with CEO expectations will be a key challenge in the years ahead. Some CEOs are planning to incentivize in-office attendance, with 87% indicating that they are likely to reward employees who return to the office with favorable assignments, promotions, or other perks.
Why It Matters: The juxtaposition of AI investment and return-to-office strategies reflects a broader trend among CEOs: balancing technological innovation with human capital management in a fast-evolving business landscape. Both priorities will shape how businesses adapt and thrive in the coming years.
- AI Investment Despite Economic Conditions: 64% of global CEOs indicated they would invest in AI regardless of the state of the economy, signaling the importance of technology in driving innovation and growth.
- Workforce Impact of AI: 76% of CEOs anticipate that AI will not fundamentally reduce the number of jobs within their organizations over the next three years. However, there is a growing emphasis on upskilling, as only 38% of CEOs are confident their workforce has the right skills to fully leverage AI.
- Ethical Challenges and AI Adoption: Over half of CEOs (61%) cite ethical concerns as a major challenge when implementing AI, highlighting the need for responsible and thoughtful integration of the technology.
- Return-to-Office Push: 83% of CEOs expect a full return to the office within the next three years, up from 64% in 2023. Additionally, 87% of CEOs plan to reward employees who return with favorable assignments or promotions, signaling a shift towards more traditional workplace expectations.