Welcome to our latest KPMG CEO Outlook. In this, the 10th edition of our research, we look at the issues impacting business leaders in both Northern Ireland and the Republic of Ireland and compare their perspectives with that of their global peers.
Our research highlights a strong level of confidence by CEOs in Northern Ireland in the local and global economy and confirms significant plans to invest in AI and talent. As geopolitics impacts everything from the cost of raw materials to supply chain matters, we look at how volatility and world events are shaping board room discussions and strategy development.
As we consider the business outlook at home and abroad, we hope our research will help policymakers make informed decisions about how best to support entrepreneurship, innovation and inward investment here.
Our CEOs are very ambitious to take advantage of AI and related technologies, even more so than their global counterparts. The challenge of attracting the right people and capabilities to make the most of these opportunities is highlighted as a risk. Our research shows that CEOs continue to recognise that people are at the heart of enabling AI, in terms of building relevant skills, enhancing workforce capability and putting the right controls in place to ensure trust can be maintained in outcomes.
As the debate about hybrid working continues for CEOs, the sentiment shows that a growing number of leaders believe that there will be a return to pre-pandemic ways of working within the next three years.
Meanwhile as the climate crisis weighs heavily, we see continued shifts in attitudes to ESG and challenges in meeting Net Zero commitments. CEOs need continued support meeting legal and governance obligations with technology developments in this regard progressing more slowly than expected. Our research also highlights the challenge of ensuring companies will have access to the resources needed to meet relevant ESG reporting standards.
Finally, our thanks to all the CEOs at home and around the world who shared their insights with us. Their ambition for their people and the businesses they lead continues to inspire us.
At a glance
Outlook
NI CEO confidence in economy similar to 2023 as inflation concerns fade.
More jobs
90 percent of NI CEOs expect to increase their headcount over the next 3 years.
Continued positivity
93 percent of NI CEOs are confident in the 3 year prospects for the economy up from 87 percent in 2023.
Company growth
NI CEOs are positive – 70 percent expect company growth in excess of 2.5 percent in the next 3 years.
Complexity
Geopolitics and a fast changing tech environment is adding to a packed CEO agenda.
Risks
NI CEOs cite supply chain risk as the single biggest threat to growth in 2024.
Top of mind
Embracing and embedding AI highlighted as the number one top of mind issue for NI CEOs.
Changing approach
93 percent of NI CEOs have adapted their strategies due to complexity – up from 63 percent last year.
Technology
AI brings advantages. And new challenges in terms of costs and regulation for CEOs.
AI budgets
50 percent of NI CEOs cite costs as a challenge in implementing AI strategies.
Regulatory concerns
77 percent of NI CEOs worry about the lack of regulation as the biggest AI planning issue.
Cyber crime
87 percent of NI CEOs worry about cybercrime and 53 percent say they are prepared for a cyber-attack.
Talent
People remain fundamental to CEO plans - despite the impact of tech and reskilling is a big priority.
Human vs machine
37 percent of NI CEOs believe AI will create more jobs than it will eliminate v’s only 23 percent of their global peers.
Skills focus
Upskilling employees to understand and implement Gen A1 the number one operational priority for NI CEOs in 2024.
Training deficits
Under half (43 percent) of NI CEOs believe their company is equipped to upskill employees to meet business objectives.
ESG
ESG is changing but remains central to CEO plans.
Net zero
40 percent of NI CEOs are not confident of meeting their Net Zero goals by 2030.
Attracting talent
47 percent of respondents see the biggest impact of ESG is in attracting talent v’s only 17% percent worldwide.
In-house capability
Only 63 percent of NI CEOs say they have the internal ability to meet ESG reporting standards.