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CEOs' confidence in firms' growth prospects up; narrow majority says AI to add more jobs

May 22, 2018

More CEOs are “very confident” in the growth of their companies over the next three years, and a narrow majority believe artificial intelligence and robotics will create more jobs than they destroy, according to the new “US CEO Outlook” survey from accounting firm KPMG.

It found 52% of CEOs believe AI and robotics will create more jobs in their organizations than they eliminate over the next three years. It also found that 49% have begun limited implementation of AI for specific processes, and 31% have already implemented it to automate a number of processes.

When looking at growth prospects for their businesses overall, 77% of CEOs were confident of their firm’s growth prospects over the next three years, up from 46% in the same survey last year.

However, 51% expect top-line revenue growth to be less than 2% over the next three years. And 49% expected growth to be in the 2% to 5% range.

Meanwhile, 36% have a “high M&A appetite,” and are likely to make acquisitions that will have a significant impact on their organization with cost reduction and business model transformation being the main drivers.

“Riding the tailwinds of tax reform and regulatory relief, US CEOs are primed to aggressively pursue growth through M&A activity, overseas expansion, and investments in innovation and collaboration,” KPMG US Chairman and CEO Lynne Doughtie said. “They are highly confident in their business prospects and their ability to both disrupt the sectors in which they operate and handle risks head-on.”

Greatest risk to growth? The most-cited was cyber security with 33% of CEOs citing it, and 68% said it’s “when” not “if” their organization becomes a victim of a cyber attack. On the other hand, 77% believe they are either “very well” or “well” prepared for it.

The report’s survey included 400 CEOs in the US.