For the first time in two years, talent is no longer the biggest challenge for global CEOs, according to a report released today by Deloitte. Of global CEOs surveyed, 57% cited geopolitical instability and 57% cited inflation as the top external factors expected to influence or disrupt their business strategy within the next 12 months.

Labor and skills shortage as a disruptor decreased to 36% from 38% in the February 2023 survey.

Global CEOs are investing more in generative artificial intelligence as it continues to create a wave of disruption, according to the report. Of those surveyed, 55% are evaluating or experimenting with generative AI, and 37% are currently implementing it to some degree. In addition, 79% believe it will increase efficiency, and 52% believe it will increase growth opportunities.

“Despite a variety of increasingly complex challenges, from geopolitical uncertainty to economic volatility, CEOs are focused on capturing opportunities of emerging technologies while maintaining a cautious approach and managing risk,” Jason Girzadas, CEO of Deloitte US, said in a press release.

Another topic in the report was recession. The report found that 53% of global CEOs expect a recession in the second half of 2023 or 2024. While 14% of CEOs believe their country is currently in a recession, 32% are not anticipating a recession in their country. Despite concerns about a recession, 89% still expect some degree of growth for their organization over the next year.

For the report, Deloitte surveyed 143 CEOs representing more than 19 industries between June 6 and June 13. Respondents included Fortune 500 CEOs, Global 500 CEOs and select CEOs in the global Fortune community.