Good morning.
Global CEOs are more optimistic about the economy than they were a year ago, but less optimistic about their company’s ability to survive the next decade. That’s my takeaway from PwC’s annual CEO survey, which covers nearly 5,000 CEOs around the world. The CEOs are remarkably sanguine about the near term, with 38% expecting the economy to improve, up from just 18% who said the same a year ago. But their sense of impending business disruption is also on the rise, with 45% saying that if their “company continues running on its current path,” it won’t be viable a decade from now. That’s up from 39% last year.
I caught up with PwC global chair Bob Moritz here yesterday, and asked him what’s driving the corporate existential angst. His response:
“The No. 1 issue is technology. And I think there are two elements of nuance to that. One, I think there’s the absolute aspect associated with technology and the forces that may come from that. The second piece is, I’m just not sure the CEOs feel as equipped to know what to do with it, and how to maximize the opportunity.”
AI permeates almost every discussion here this week and is the subject of countless company-sponsored sessions up and down the Promenade. I met this morning with BNY Mellon CEO Robin Vince, who talked about how his bank is using generative AI tools to write first drafts of daily research reports. When I asked how he and his clients viewed the potential of AI, he summed it up in four words: “Excited, cautious, optimistic, patient.” The PwC survey shows the same mixed view. CEOs believe AI, and generative AI in particular, could have huge productivity benefits over time. But only a minority—32%—say they have broadly adopted it. And they said they were more likely to increase than decrease headcount over the next 12 months, with 39% expecting increases of 5% or more. View the full survey results here.
I’ll continue on the AI theme for much of this week, moderating sessions for Coins2Day partners including Builder.ai, C3.ai, and Cognizant. But the big theme today in Davos is geopolitics, with speeches by Chinese Premier Li Qiang, Ukraine President Volodymyr Zelensky, U.S. National Security Adviser Jake Sullivan, and the prime minister of Qatar. More here tomorrow.
Other news below.
Alan Murray
@alansmurray
[email protected]
TOP NEWS
Elon wants control
Tesla CEO Elon Musk will continue to build AI products outside of the EV maker until he gets more control of the company, he posted on X. Musk said he would want at least 25% voting control before growing Tesla to be a “leader in AI and robotics.” Musk currently owns about 12% of the company. The billionaire is trying to launch xAI, positioned as a competitor to OpenAI. Bloomberg
Boeing inspections
Boeing will impose additional inspections on factories responsible for installing door plugs on its planes, following the Alaska Air incident where one such plug was ripped off mid-flight. “We are not where we need to be,” Stan Deal, CEO of Boeing’s commercial plane unit, wrote in an internal memo. Safety issues are unnerving Boeing’s customers: Chinese airlines will now conduct additional inspections of Boeing planes, delaying the U.S. Manufacturer’s return to the Chinese market. The New York Times
Don’t sell
Chinese regulators are privately telling large institutional investors to pull back on selling shares to help stabilize the market. This “window guidance” tells investors not to become net sellers of equity on certain days. The CSI 300 index, which tracks companies listed in Shanghai and Shenzhen, is down 20% over the past year. Financial Times
AROUND THE WATERCOOLER
Commentary: Bad-faith reverse-discrimination claims hurt America’s economic future and global standing by Ron Swan
AI’s impact and lack of coordinated regulation ‘could change the course of history not necessarily for the good’, warns Swiss banking watchdog by Prarthana Prakash
Adidas CEO gave out his number to 60,000 employees to boost morale after that Kanye West crisis: ‘Some people think I’m crazy’ by Orianna Rosa Royle
WEF president: ‘It’s time to revitalize trade—and reverse the trend of Slowbalization’ by Børge Brende
This edition of CEO Daily was curated by Nicholas Gordon.
This is the web version of CEO Daily, a newsletter of must-read insights from Coins2Day CEO Alan Murray. Sign up to get it delivered free to your inbox.
