Source: Radio New Zealand
New Zealand CEOs are less worried about the impact of global issues than their overseas counterparts. 123RF
- Majority chief executives expect improved economics this year
- More than a third expecting higher revenue
- NZ chief execs more positive about finances, less worried about global issues than global peers
- Biggest concern is keeping up with AI technology developments
The country’s top executives are optimistic about economic recovery and the fortunes of their own companies, but fear being left behind in the development and use of artificial intelligence.
PricewaterhouseCoopers’ (PwC) annual chief executive survey found 58 percent expected improving economic growth in the coming year, fractionally lower than last year. That compared with the global rating of 55 percent.
Thirty seven percent were “very or extremely confident” about their company’s revenue prospects this year, rising to 54 percent looking over the coming three year’s revenue outlook.
PwC New Zealand chief executive Andrew Holmes said the optimism shown in the survey was “cautious”.
“Unlike many of their global peers, they have been less impacted by geopolitical issues and are poised to take advantage of better operating conditions.”
New Zealand’s small economy and isolation accounted for the reduced impact and concern of global issues.
Losing pace in the AI race
Holmes said the big issue worrying chief executives was artificial intelligence, and not being able to keep up with developments.
“It’s being left behind with outdated business models, unable to take advantage of new technology, specifically AI.”
More than half of the local respondents cited this as their main concern, although close to two-thirds also said their organisations were ready for AI, and 70 percent said their technology could support AI.
But Holmes said the survey showed little significant effect of AI on businesses.
“Over 78 percent have yet to see AI have any impact on their organisation, and only a minority are reaping any benefits from AI to their bottom line.”
On most of the issues polled, New Zealand responses were close to those of the global survey, but cyber security and climate change were two weak spots displayed in the survey.
“Only a third of New Zealand respondents [are] expecting their companies to take action to a significant extent to improve cyber security, as a response to geopolitical risk, in the next three years.
“Climate resilience is another weak spot, with fewer than a quarter of respondents, in New Zealand and globally, reporting robust measures to manage climate-related risks while seizing associated opportunities,” the report said.
PwC surveyed 4454 CEOs across 95 countries and territories from 30 September through to 10 November, with 103 New Zealand CEOs taking part.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
