– Growth is the top strategic business priority for half of CEOs
– Most CEOs believe that an economic crisis or recession will be shallow and short
– Inflation and price sensitivity are creating the biggest shifts in customer behavior
O Gartner, a world leader in research and advice for businesses, announces a new CEO survey that names Artificial Intelligence (AI) as the top technology rated to have a significant impact on business, cited by 21% of respondents. The search "2023 Gartner CEO and Senior Business Executive” was conducted from July to December 2022 and surveyed more than 400 CEOs and senior executives from Latin America, North America, Europe, Asia/Pacific, Middle East and South Africa, from companies across different industries, revenue and company sizes .
Mark Raskino, Vice President and Analyst at Gartner
"THE Generative Artificial Intelligence will have a profound impact on operating business models,” said Mark Raskino, vice president and analyst at Gartner. “However, the fear of being left behind is a powerful driver of the technology market. Artificial intelligence is reaching a point where CEOs have yet to invest, but they are becoming concerned that they are missing out on something competitively important.”
The survey yields some very interesting results:
Kristin Moyer, Vice President and Analyst at Gartner
Half of CEOs cite growth as their top strategic business priority: “In determining business priorities, CEOs are hesitant but not paralyzed,” says Kristin Moyer, vice president and analyst at Gartner. “More than half of respondents believe that an economic slowdown or recession in 2023 will be shallow and short-lived. The survey shows only a modest increase in concerns about cash flow, capital and fundraising.” According to him, despite the impact of these economic headwinds, half of CEOs cited growth as their top strategic business priority for the next two years. Technology also remains a key focus area, closely followed by workforce issues.
“After three years of volatility, CEO priorities are stabilizing,” adds Raskino. “Executive leaders are looking beyond the aftershocks of the downturn to a time when next-level talent, sustainability and digital change will drive competitive performance.”
The mentions of environmental sustainability increased by 25% over the previous year's survey, when by first time the term ranked among CEOs' top 10 priorities. Gartner predicts environmental sustainability in an even higher category than technology by 2026.
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Inflation drives changes in customer behavior: For about 22% of CEOs, the inflation is the biggest risk for business. Nearly a quarter of respondents anticipate increased price sensitivity this year as the biggest shift in customer expectations. However, raising prices is still the top action CEOs are taking in response to inflation (44%), followed by cost optimization (36%) and productivity, efficiency and automation (21%).
“It's worrying that CEOs still don't seem to be focused on productivity as much as they should be in an inflationary period,” says Moyer. “This may be due to the desire that inflation does not become a persistent feature of the economic landscape. They must embrace automation to redesign methods, processes and products for efficiency, rather than pushing cost increases onto customers.”
Attracting and retaining talent is a top workforce priority: When asked about the impact of different risks on the business, 26% of CEOs cite a talent shortage as the most damaging issue for their organization. Attracting and retaining talent is by far the top priority for its workforce. Respondents anticipate that pay concerns are the biggest change in employee and future employee behavior, followed by a desire for greater flexibility and remote or hybrid working. “The emphasis on pay is not surprising in an inflationary environment, but in previous economic cycles, unemployment typically undermined the power of the labor market,” adds Raskino.
Gartner for Information Technology Executives provides objective, actionable information for CIOs and IT leaders to help them lead their organizations through digital transformation and lead business growth. Additional information is available at www.gartner.com/en/information-technology.
