Survey looks at regional differences, top challenges and use of AI

Many businesses globally are looking to significantly increase their workforce numbers as they anticipate a lot of positive ahead for the global economy, according to a report.
Overall, 42 per cent of chief executive officers (CEOs) expect to increase headcount by five per cent or more in the next 12 months, up from 39 per cent last year, reports PwC.
The number is more than double the proportion who expect headcount decreases (17 per cent).
The percentage of those looking to hire more workers is highest (48 per cent) among smaller companies (less than US$100 million) and those in the technology (61 per cent), real estate (61 per cent), private equity (52 per cent) and pharma and life sciences (51 per cent) sectors.
Overall, 71 per cent of Canadian employers have a positive feeling about their hiring outlook this year, according to a previous Express Employment Professionals report.
What is employers’ outlook for the global economy?
The positive hiring outlook comes as nearly 60 per cent of CEOs around the world expect global economic growth to increase over the next 12 months, according to PwC's 28th Annual Global CEO Survey.
Still, CEOs expect that there will be challenges ahead, citing macroeconomic volatility (29 per cent) and inflation (27 per cent) as the top global risks for the year ahead.
However, there are clear differences between regions.
Geopolitical conflict is seen as the biggest risk in the Middle East (41 per cent) and Central and Eastern Europe (34 per cent). In Western Europe, macroeconomic volatility tops the list at 29 per cent, and cyber risk (27 per cent) is a marginally higher concern than a lack of skilled workers (25 per cent) and inflation (24 per cent).
Inflation is the top concern in Africa (39 per cent), while North America and Asia-Pacific prioritise risks largely in line with the global averages.
Should a company change its core strategy?
"This year's CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must reinvent how they create, deliver and capture value. Emerging technologies such as GenAI, shifts in geopolitics, and the climate transition are all revolutionising how the economy works,” says Mohamed Kande, global chairman, PwC.
“New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model.”
CEOs globally continue to focus on growth in 2025 despite material challenges and risks ahead, according to a previous report from The Conference Board.
The need for adjustment of strategy is highly important, as 42 per cent of CEOs believe their company will not be viable beyond the next decade if it continues on its current path, according to PwC’s 4,701 CEOs across 109 countries and territories from Oct. 1 to Nov. 8, 2024.
Over four in 10 (42 per cent) cite shifts in the regulatory environment as having the biggest influence on their economic viability.
Last month, small business confidence in Canada took a hit, according to the Canadian Federation of Independent Business. The long-term business optimism index, which measures 12-month expectations, fell to 56.4 in December, a three-point decline from the previous month. The short-term index, which reflects a three-month outlook, dropped five points to 46.6.
Delivering value boosts profits
One positive development is that 63 per cent of CEOs have taken at least one significant action to change how their company creates, delivers, and captures value in the last five years. And CEOs that have taken more reinvention actions in the last five years reported higher profit margins in the last 12 months, according to PwC.
Nearly four in 10 (38 per cent) say they have begun competing in at least one new sector in the last five years – with one-third (34 per cent) noting this has represented over 20 per cent of company revenue over this period.
However, the pace of reinvention is slow and a large majority of companies lack agility, particularly when it comes to moving budget and people between projects and business units, according to the report.
Nearly half of CEOs say they reallocate 10 per cent or less of financial and human resources from year to year, while more than two-thirds reallocate less than 20 per cent. On average, only seven per cent of revenue over the last five years has come from distinct new businesses.
What is the future of AI in the workplace?
When it comes to the use of generative artificial intelligence (GenAI), CEOs are seeing positive results, according to PwC. Nearly six in 10 (56 per cent) report seeing efficiency gains in their employees' time over the last 12 months, and one-third saw revenue (32 per cent) increases.
However, while 46 per cent said in 2024 that they expected to see profitability improvements, only 34 per cent say they had.
Still, 49 per cent expect an increase in profits with the help of GenAI in the next 12 months.
And many are incorporating the technology deeper into their operations:
- 47 per cent expect to integrate AI (including GenAI) into their technology platforms over the next three years
- 41 per cent plan to integrate it into core business processes
- 30 per cent have plans for new products and service development
"This year's survey shows a more mature view of GenAI in the enterprise,” says Matt Wood, Global & US commercial technology & innovation officer (CTIO), PwC.
“CEOs are convinced it has the power to unlock new opportunities – in fact they are more optimistic than last year. At the same time, they are more aware of the challenges they need to navigate to realise that value. They see the importance of building trust into the way their AI systems are designed, and for now are prioritising integration into core business processes. It is important that they also see the potential GenAI has to generate growth through new products and services and create value in new ways."
Over nine in 10 (92 per cent) of small- and medium-sized business (SMBs) leaders are confident in their company's growth prospects over the next three years, and they are banking on AI and automation, according to a previous report from KPMG.