A KPMG survey has found that many CEOs are optimistic their businesses will prosper despite declining consumer confidence in the global economy.

Of the more than 1,300 corporate leaders from across the world that were polled, 92 per cent of them plan to boost employee headcount over the next three years, the highest proportion since 2020. This recruitment optimism is juxtaposed with 72 per cent of CEOs anticipating increased pressure to ensure their businesses’ long-term prosperity.

Raymond Campbell, KPMG in Caricom Country Leader, said: “Over the last ten years, CEOs have sought to create confidence in a number of ways, notably increasing investment in innovation and tech, placing people at the heart of growth strategies, and renewing their commitment to ESG and sustainability as a source of value creation.

“Top threats to growth have shifted, with CEO’s citing supply chain challenges and operational issues ahead of cyber security and last year’s number one threat – geopolitics and political uncertainty. All these issues impact businesses in the Caribbean.”

Investing in innovation: AI adoption accelerates

While 53 per cent indicate that there is some level of economic uncertainty, most have begun to look at ways in which artificial intelligence can and will impact their businesses. In fact, most business leaders are reaffirming their commitment to increase investment in innovation and technology, including AI, as a driver of growth.

A further breakdown of the KPMG survey showed that 64 per cent of CEOs identified AI as their top investment priority in 2024 – though most are looking at it as an investment that will pay off in the medium term, essentially within the next three to five years.

Marco Vassallo, partner, digital solutions, KPMG Islands Group noted: “AI is poised to revolutionise island communities by addressing their unique challenges and unlocking new opportunities.

“AI-powered predictive analytics can help island businesses optimise their operations, such as supply chain management and inventory control. Additionally, AI-driven personalisation can enhance customer experiences, leading to increased satisfaction and loyalty.

“By leveraging AI, island communities can improve their economic competitiveness, attract investment, and create a more sustainable future. AI-driven training and upskilling programmes can equip the workforce with the necessary skills to thrive in the digital age, addressing skill shortages and future-proofing jobs.

“This is crucial for addressing the unique challenges faced by island-based operators with limited local markets and resources, enabling them to tap into global markets and compete effectively by increasing efficiency and productivity through automation and optimisation.

“To fully realise the benefits of AI, it is essential for island communities to conduct thorough AI readiness assessments. These assessments will evaluate the maturity of the organisation or sector with respect to AI, identify potential challenges, and develop a roadmap for successful AI adoption. By taking a proactive approach to AI readiness, island communities can ensure that they are well-positioned to harness the power of AI and drive sustainable growth.”

The CEOs are, however, aware of the risks that the rapid push to implement new technology presents.

Some 61 per cent of business leaders cited ethical challenges as some of the most difficult to address when implementing AI within their business, while 50 per cent expressed concern over a lack of regulation, and 48 per cent highlighted a lack of technical skills and capabilities.

Finally, while 76 per cent of CEOs believe that AI will not fundamentally impact the number of jobs in their organisation, only 38 per cent felt that their employees have the right skills to fully leverage the benefits of AI. Over half agree that the integration of generative AI has made them rethink the skills required for entry-level roles.