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\nNew Zealand CEOs are less worried about the impact of global issues than their overseas counterparts.
\nPhoto: 123RF\n<\/p>\n
Majority chief executives expect improved economics this year
\nMore than a third expecting higher revenue
\nNZ chief execs more positive about finances, less worried about global issues than global peers
\nBiggest concern is keeping up with AI technology developments<\/p>\n
The country’s top executives are optimistic about economic recovery<\/a> and the fortunes of their own companies, but fear being left behind in the development and use of artificial intelligence<\/a>.<\/p>\n 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.<\/p>\n 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.<\/p>\n PwC New Zealand chief executive Andrew Holmes said the optimism shown in the survey was “cautious”.<\/p>\n “Unlike many of their global peers, they have been less impacted by geopolitical issues and are poised to take advantage of better operating conditions.”<\/p>\n New Zealand’s small economy and isolation accounted for the reduced impact and concern of global issues.<\/p>\n Losing pace in the AI race<\/p>\n Holmes said the big issue worrying chief executives was artificial intelligence, and not being able to keep up with developments.<\/p>\n “It’s being left behind with outdated business models, unable to take advantage of new technology, specifically AI.”<\/p>\n 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.<\/p>\n But Holmes said the survey showed little significant effect of AI on businesses.<\/p>\n “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.”<\/p>\n 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.<\/p>\n “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.<\/p>\n “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.<\/p>\n PwC surveyed 4454 CEOs across 95 countries and territories from 30 September through to 10 November, with 103 New Zealand CEOs taking part.<\/p>\n