The role of the chief executive is constantly evolving, perhaps more than ever over the past few years. High inflation, increased geopolitical tensions, and risks presented by new technology are all disrupting standard operations — and emphasizing the importance of confidence in CEOs’ ability to steer their organizations through a steady stream of new obstacles.
Vincent Firth WEV87 G94
As co-leader of Deloitte’s Chief Executive Program, I’m interested in what CEOs are thinking and feeling when it comes to leading their organizations. Our team works with Fortune to survey chief executives multiple times a year, and according to the Fortune/Deloitte Summer 2024 CEO Survey from June, CEOs are optimistic about their organizations’ ability to weather the storm. I found it interesting that nearly three-quarters of respondents (73 percent) reported feeling some degree of optimism around their company’s performance over the next 12 months. While this is slightly lower than what we found in February’s Winter 2024 survey (80 percent), I believe it suggests that CEOs are realistic but optimistic about their ability to weather financial obstacles.
Macroeconomic headwinds continue to impact confidence
CEOs are no strangers to disruption — a good thing, given that many expect the challenges within their organizations and the broader economy to continue through at least the year’s end. For example, for the third season in a row, geopolitical instability leads the list of disruptors for CEOs at 60 percent, and concerns over inflation (which have been a mainstay on CEOs’ list of external concerns, according to the Fortune/Deloitte survey) rose to 45 percent, from 27 percent in the Winter 2024 report.
While none of these disruptors are “new,” what I think is enlightening is that almost half (43 percent) of CEOs expressed confidence in their ability to navigate inflation, and just over half (51 percent) reported confidence in their ability to navigate geopolitical instability. This suggests that despite increased worries about the impact of inflation on their companies’ operations, CEOs have cultivated a resilient mindset, which has transformed into confidence in their leadership abilities.
CEOs face significant challenges but are confident they can manage despite uncertainties. Technology plays a significant role in fortifying CEO decision-making and can be a game-changer when it comes to emerging risks.
Generative AI as both a disruptor and a strategic advisor
Although the latest survey indicates that curiosity over the potential of generative AI (GenAI) has tempered, CEOs are leaning on technology to help mitigate and navigate uncertainty as well as to explore new avenues for innovation. In my work with chief executives, I’ve seen that this has ushered in an era of pragmatic exploration, and while the percentage of CEOs planning to implement the technology in their organizations remained flat from the Winter 2024 report, more indicated using GenAI to glean strategic insights (45 percent) and accelerate innovation (43 percent).
Technology has the potential to transform not just organizational operations but the role of the CEO. Support with research, data, and insights was among the reported use cases for GenAI cited by CEOs experimenting with the technology in their role. These applications can lead to greater insights and forecasting ability, supporting strategic decision-making.
As CEOs anticipate continued disruption from geopolitical instability and inflation, GenAI technology could improve their ability to quickly glean insights and make intelligent decisions on a deadline.
Looking ahead to 2025
While geopolitical concerns are likely to ebb and flow and macroeconomic variables like inflation will always be something executives contend with to some degree, CEOs can develop a certain mindset to prepare themselves and their leadership teams for further disruption. For example, viewing opportunities and challenges through a lens of “realistic optimism” can help put objectives into perspective.
The Summer 2024 Fortune/Deloitte CEO survey clearly demonstrates this. Realistically, CEO concerns regarding the influence of inflation, geopolitics, and changes to regulation on their operations are valid, given the challenges they’ve surmounted over the past few years. However, they’re balancing that concern with confidence that they’ve cultivated the necessary skills to successfully navigate that disruption, leading to a healthy dose of optimism.
Vincent Firth WEV87 G94 is a managing director with Deloitte Consulting LLP in the US Strategy service line, Monitor Deloitte. As a co-leader of Deloitte’s Chief Executive Program, he supports the success of CEOs and business leaders throughout their careers and works with CEOs and corporate executive teams to build new strategic capabilities; redesign organizations; and develop, align, and implement strategy.
