45% of top executives believe that without changes their companies will close in 10 years

45% of the presidents and CEOs of the largest companies in the world believe that, if they do not change the direction of their companies, they will disappear in less than ten years, according to the survey published this Monday by PwC on the first day of the Davos World Economic Forum.

In its 27th edition, the document reveals that Spanish executives are relatively more optimistic than the average, since the proportion reaches 36%, for more than 4,700 executives interviewed.

Among the main concerns of the managers interviewed, technological disruption stands out, embodied by artificial intelligence (AI) and climate change.

In the presentation of the survey, the CEO of PwCBob Moritz, has focused not so much on the problems that companies face but rather “to those who are to come”, much of which derives from the emergence of artificial intelligence (AI).

This unifies all managers, who have to confront, each one to the extent of their possibilities and with the tools they have available, “to the same challenge.”

It is no longer about dealing with the circulation of billions of data, but about artificial intelligence “autonomous”which suffers continuous cyber attacks and which, together, “raises the level of risks” of the companies, Moritz said.

Better prospects than in 2023

However, the survey has detected some improvement in the expectations of managers, from the “record” of pessimism reached in the previous edition, since executives who foresee a deterioration in the world economy in 2024 has gone from 73% to 45%.

Likewise, those who believe that the situation will get better have grown to 38% of those interviewed; Spaniards agree with their international counterparts in growth expectations, since those who anticipate an improvement in global growth in the next twelve months go from 21% to 38% and this drops to 46% – from 76% in the previous survey -, those that point to a worsening.

Among the main obstacles to “reinvent” their companies, 64% of those surveyed – and 68% of Spaniards – point out the regulatory environment; 55% -43% of Spaniards-, concern about the entry of competitors into their businesses and 52% -50% of Spaniards-, the lack of employees with the necessary skills.

They also point to the “inefficiencies” existing in many routine activities, from decision-making meetings to emails.

But top executives are now more optimistic than a year ago, the document indicates, among other reasons due to the moderation of inflation growth in most markets and a more favorable interest rate scenario, with lower perceived exposure. of companies to geopolitical conflicts and a decrease in economic volatility.

The work breaks down the data by geographical areas and, in general, those interviewed are more optimistic than pessimistic about the growth of their own national economies.

However, top American and European executives are the exception to this trend, since in Europe 32% expect to see their national economies grow, but 48% foresee a slowdown; in USAthe ratio is 31% versus 52%.

Among Spaniards, 36% point to an improvement in activity in our country in 2024, and 48% fear a worsening.