Listen to this articleCEOs are increasing their investments in cybersecurity as risks related to artificial intelligence rise, according to a new study released by KPMG LLP, the audit, tax and advisory firm.
According to the 2024 KPMG U.S. CEO Outlook Survey released Wednesday, CEOs are actively addressing near-term risks to growth, especially geopolitics and economic uncertainty, and longer-term structural changes to the U.S. economy, including the dynamic labor market and potential policy shifts on tax and regulations.
The new report features insights from more than 1,300 CEOs at large companies globally, including 400 in the U.S., on how they are navigating the challenge of compound volatility.
“CEOs’ primary focus remains anticipating and staying ahead of the compounding and interrelated risks,” Paul Knopp, KPMG U.S. chair and CEO, said in a company statement. “CEOs are strategically allocating capital to address cyber and geopolitical risks that can cause abrupt business disruption in the short term, while making long-term investments in GenAI and M&A to spur future growth.”
Among the report’s findings, 85% of CEOs surveyed are confident in the growth prospects of their country, while 69% of CEOs are increasing their investments in cybersecurity to protect their operations and IP from AI threats.
More than two-thirds (68%) of CEOs polled expect to see return from their investments in GenAI in three to five years and they identify M&A (30%) and organic growth (22%) as the most important strategies for achieving their organization’s growth objectives over the next three years.
Meanwhile, CEOs are optimistic about getting employees back to the office, with 79% of U.S. CEOs envisioning the working environment for corporate employees whose roles were traditionally based in-office to be back in the physical workplace in the next three years, a huge jump from the 34% who felt that way earlier this year, the report found.
To encourage employees to come back to the office, 86% of CEOs say they will reward employees who make an effort to come into the office with favorable assignments, raises or promotions.
The report surveyed 1,325 CEOs in 11 key markets, including Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, U.K. and the U.S. and 11 key industry sectors, including asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecommunications.
All of the survey’s respondents have annual revenues of over $500 million and more than one-third of the companies surveyed have more than $10 billion in annual revenue. The survey was conducted between July 15 and August 29.
The KPMG global organization operates in 142 countries and territories and has more than 273,000 people working in member firms around the world. The company’s Long Island office is at 1305 Walt Whitman Road in Melville.