Fall 2023 Fortune/Deloitte CEO Survey

Perspectives

Fall 2023 Fortune/Deloitte CEO Survey Insights

Building for resiliency amid disruption

While the majority of surveyed CEOs (88%) continue to expect some organizational growth over the next 12 months, the Fall 2023 survey shows a tempered outlook on the global economy, their industry, and their company performance. The CEOs surveyed also say that maintaining growth is one of the biggest challenges they face today. Regulation emerged as one of the top external business disruptors, joining geopolitical instability, inflation, other sources of financial/market instability, and labor/skills shortage, which have remained the top disruptors since the February 2023 survey.

In such a complex global environment, CEOs need to sift through uncertainty to identify ways to build resiliency and paths for value in the long term. Potential avenues for both short- and long-term growth include Generative AI with its immediately practical value applications, and purpose, diversity and inclusion initiatives for their ability to inspire workforces and recruit key talent. Below are highlights from the most recent Fortune/Deloitte CEO survey.

Key takeaways

Growth and outlook

The majority of CEOs expect some level of organizational growth over the next 12 months while their outlook for the global economy, their industry, and company performance has moderated.

Disruptors

Concerns about geopolitical instability, inflation, other sources of financial/market instability, and labor/skills shortage continue while regulation surfaces as a top concern for CEOs.

Generative AI

Adoption rates increased slightly since June with half of CEOs having implemented Gen AI in limited production use, at scale production, or pervasive adoption.

People, purpose, and climate

CEOs are focused on climate/ sustainability and DEI reporting along with workplace measures like employee resource groups and individual sustainability actions.

While CEOs face growing complexity, uncertainty, and headwinds, they are seeking opportunities to build resiliency, drive new growth, and increase efficiencies through Gen AI while managing risk. At the same time, providing a meaningful workplace experience and attracting and retaining talent are top of mind as they balance initiatives related to purpose, social impact, climate and sustainability, and DEI.

— Jason Girzadas, CEO, Deloitte US

Growth and outlook: While CEO outlooks have moderated, they still expect growth for their companies and industries.

CEOs continue to express fairly tempered views on growth, with an eye on economic forces and headwinds in the coming year while balancing priorities to maintain both short- and long-term growth. A decrease in optimism toward company and industry performance, combined with an overall increase in pessimism, particularly towards the global economy, suggests CEOs are moderating their outlook overall.

Achieving profitable growth with fewer resources against market and industry headwinds.

— A CEO respondent when asked about the biggest challenge they face as a CEO today

Disruptors: Geopolitical instability, inflation, other sources of financial/market instability, and labor/skills shortage continue to lead top disruptors while regulation emerges as a top concern.

Geopolitical instability and inflation continue to lead the list of external disruptors – both at 51%. Other sources of financial/market instability (38%) came in third, and regulatory issues joined the top four disruptors for CEOs, at 35%, tied with labor and skills shortage. While top disruptors may inform market sentiment, CEOs report high confidence in their organizations’ ability to navigate the pressure of disruptors on their business.

Generative AI: CEOs shifting from experimenting and evaluating to increasing adoption.

Almost half (49%) of surveyed CEOs are experimenting with or evaluating Gen AI—similar to June’s results (55%). More importantly, an increasing number of CEOs indicate their organization has moved to adoption in just a few months, with a 10-percentage-point increase in limited production use and 6% increase in at-scale production. As the technology rapidly matures, CEOs appear to be embracing Gen AI as a tool for the future and are exploring opportunities to both create efficiencies and open up new value in their organizations.

 

The biggest challenge I face is the need for the organization to move faster, with more urgency in Gen AI and with technology and digital transformation.

— A CEO respondent when asked about the biggest challenge they face as a CEO today

People, purpose, and climate: People and talent are a major driver for purpose-related initiatives, as CEOs focus on sustainability measurement and reporting.

CEOs are reporting that attracting and retaining talent are drivers behind their organizations’ purpose and social impact (77%) and DEI initiatives (78%). Further, more than half (58%) believe their organization’s commitment to purpose and social impact contributes to meaningful workplace and leadership experiences. While the percentage of CEOs reporting that DEI is built into their strategic priorities fell since June 2022, it still remains high at 65%, slightly higher than June 2021. CEOs are prioritizing DEI reporting to employees (66%) and establishing employee resources groups (66%), and 44% of CEOs reported that their organizations are disclosing DEI metrics to the public, up from 33% in June 2021.

Climate and sustainability initiatives are also a key focus area for more than half of CEOs, with nearly 60% focused on climate and sustainability measurement and reporting, 58% investing in sustainability in their physical workspaces, and 51% investing in emissions reductions across the value chain.

Transforming the workforce to embrace disruptive technology and gaining proficiency in recruiting successful talent from outside the firm (versus home grown).

— A CEO respondent when asked about the biggest challenge they face as a CEO today

About the survey

In this Fortune/Deloitte CEO Survey, 104 CEOs representing more than 26 industries participated, and 93% of respondents are from organizations based in the United States. The remainder are from organizations based outside of the United States.

Fielded October 3-11, 2023, the survey consisted of 17 questions that explore market outlook and predictions, Generative AI, and business priorities. Surveyed CEOs include Fortune 500 CEOs, Global 500 CEOs, and select public and private CEOs in the global Fortune community.

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

Explore past editions of the Fortune/Deloitte CEO Survey

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