Chief executive officers expect big things from generative artificial intelligence in 2024.

Some 61% of those in the U. S. say the technology will improve the quality of their products and services and 68% believe it will change the way their company creates, delivers and captures value over the next three years. That’s according to the 27^th annual PricewaterhouseCoopers LLP Global CEO Survey released today.

Calling this an “existential inflection point” for many companies amid new regulations, climate change and the need for business reinvention, PwC said CEOs are nevertheless largely confident about their ability to compete in future years. Although they see generative AI as having an enormous promise, two-thirds also believe it will increase competitive intensity in their industry, and 61% say it will require most of their workforce to develop new skills.

The executives are intrigued about generative AI’s ability to yield efficiency gains while also enabling their companies to generate new sources of revenue, the latter goal being cited by 52% of respondents. More than two-thirds said they expect generative AI will increase the amount of work that employees can accomplish over the next year, and 44% said they see the technology delivering a net increase in profits versus just 3% who anticipate a decrease.

CEOs aren’t blind to the risks of a radical new technology. Just over three-quarters believe generative AI will increase the risk of a cybersecurity breach, and 63% fear it will foment the spread of misinformation in their company. Just over half fear technology will create legal or reputational risk.

They are also wary of the risks posed by the growing number of government regulations, with 31% saying compliance inhibits their company’s business model to a large or very large extent. Other top impediments to creating value include competing operational priorities (cited by 27%) and limited financial resources (19%). Concerns are even greater outside the U. S., with 44% of top executives in Africa and Eastern Europe and 42% in Latin America citing regulation as a problem.

Inflationary concerns also haven’t eased. The 51% of U.S. CEOs who plan to raise prices by 5% or more this year dwarfs the 6% who expect to lower them by 5% or more. The good news is the 38% plan to increase headcount by at least 5%, compared with 23% who plan a comparable reduction. The results were similar in other regions.

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