External macroeconomic and geopolitical factors, such as inflation and war, are important in how CEOs define their organization's strategy.
Last year, the continued impact of the pandemic, threats of recession, a global energy crisis and ongoing conflicts in Europe and the Middle East created a particularly volatile and disruptive global environment. According to Gartner's 2023 CEO Survey, business strategies focused on "pausing and pivoting."
However, while these crises continue into 2024, the outlook for this year and beyond is markedly different. According to Gartner’s 2024 CEO Survey, CEOs are prioritizing enacting post-crisis business strategies, with a particular focus on growth.
The survey found that growth is the top business priority (62%) for CEOs, up 25% from last year and at its highest level since 2014. Given the instability companies face, this renewed focus on expansion makes sense and CEOs believe conditions are better for pursuing opportunities after a difficult period. With stability returning, leaders are eager to make up for lost time and market share.
According to the survey, technology-related change and AI are the keys to delivering this growth and achieving other C-suite priorities.
Driving change with tech
CEOs' second biggest priority (33%) is technology-related change, although 53% say their digital transformation is just starting or is less than half done.
Technology's potential is recognized as central to corporate strategies. However, the specific technologies of interest are shifting rapidly. Where digitalization dominated last year's agenda, AI has taken the top spot in 2024, with 24% focusing on technology compared to 4% in 2023.
In unusual yet significant agreement, 59% of CEOs believe AI is the technology that will most impact their industry, while 64% suggest that AI breakthroughs in 2023 justified the tech sector hype. On an individual level, 75% of CEOs used ChatGPT in the first half of 2023 and 44% used it in their own jobs.
Through automation, productivity gains and headcount reduction, CEOs now recognize AI's potential for breakthrough value creation, such as improving customer experience levels (29%) and growing revenue.
The survey also found that 48% of CEOs expect AI automation to reduce customer service headcount the most, while the figure in finance was also reported as much higher compared to areas like the C-suite, HR and IT.
These changes reflect AI's rising accessibility and mainstream adoption potential.
There's little doubt that the emergence of GenAI has opened the door to a new autonomous business era enabled by AI. Technology strategies must evolve in tandem with rapidly changing capabilities to seize these opportunities.
Realizing the vision with AI
Regarding AI, half of CEOs directly lead game-changing applications, while the other 50% rely on CIOs, CTOs and CDOs to unlock value and drive incremental improvements. Proactive CEOs use AI to transform business models, operations, R&D and more.
However, communicating AI's value can be challenging. To convey the benefits, CEOs should focus on outcome-driven metrics over features to prove returns. Advantages and benefits must also be clearly articulated to stakeholders like CFOs.
Gaining CEO ownership further accelerates progress. When digital priorities are championed from the top, organizations move much faster. This top-level engagement is critical for marshaling support and resources.
Sustainability and resilience rise in importance
Beyond growth and technology, the survey found sustainability and resilience climbing CEO agendas. Both factors have seen steady increases in priority over the past two decades. In 2024, 69% of CEOs agree that sustainability is a business growth opportunity for them.
Interestingly, the survey found that a clear majority of European (85%) and APAC (79%) CEOs view sustainability as a growth opportunity, while North American CEOs are evenly split (50%).
Smart organizations will explore linking sustainability, resilience and technology initiatives to unlock synergies. Integrating these perspectives strategically delivers greater strategic impact, from risk management to innovation.
Demonstrating clear value
CEO priorities are adapting to ongoing disruption by focusing on growth, emerging technologies, sustainability and resilience. AI strategies, in particular, will be important enablers in driving change and transformation at scale.
Demonstrating clear value through metrics and benefits messaging, with CEO leadership, allows companies to accelerate transformation and realize strategic visions. As uncertainty persists, agility and impact will define those who thrive in changing times.
