Amidst economic uncertainty, Canadian CEOs cautiously optimistic about growth this year, but must embrace AI for global competitiveness: PwC 2025 Global CEO Survey

• 55% Canadian CEOs expect global economic growth to improve, up from 31% last year. Domestic growth expectations were at 42%, up from 25% last year.
• 79% of Canadian CEOs are planning to adopt AI in the next 12 months; however, they trail their global counterparts at 87%.
• 58% are planning to make at least one acquisition in the next three years.
• Almost 4 in 10 Canadian CEOs have begun competing in new sectors in the last five years

TORONTO, Jan. 22, 2025 /CNW/ - While Canadian CEOs are aware of the potential for macroeconomic and geopolitical uncertainty, they're optimistic about economic growth this year: 55% (compared to 31% last year) expect global growth to improve, according to PwC's 28th Annual Global CEO Survey. Domestic growth expectations were also up, with 42% expecting an improvement, up from 25% last year.

The survey of 4,701 CEOs in 105 countries and territories, including 167 in Canada, highlights the need for business leaders to reinvent through GenAI adoption, strategic acquisitions, new sector competition, and addressing climate change.

"While Canadian CEOs are more optimistic about economic growth than they were last year, they recognize the need to embrace AI and new technologies, invest in new sectors and reinvent their businesses. Despite the uncertainty around potential economic measures that could come into effect with the new US administration, Canadian CEOs remain remarkably resilient and are preparing to take on the challenges ahead," said Nicolas Marcoux, CEO, PwC Canada.

Canada lags in embracing AI: The urgent need to accelerate adoption

While 79% of Canadian CEOs plan to adopt AI in the next 12 months, this is below the global average of 87%. Canadian CEOs also lag in integrating AI into strategies, operations, and workforce development. They're also seeing a gap in AI outcomes. While 54% of CEOs last year expected improved employee efficiency from generative AI, only 45% saw it. Similarly, anticipated profitability increases materialized for only 20% versus a projected 29%.

"While Canadian CEOs recognize the potential of AI, they have yet to see the impact of it on the bottom line," added Marcoux. "Integrating AI organization-wide, prioritizing upskilling and transparently addressing job evolution are crucial for building trust, maximizing AI's potential and boosting productivity."

Key opportunities for business reinvention

A growing percentage of Canadian CEOs (35%) believe their businesses might not be viable in 10 years, up from 32% last year. The good news is that Canadian CEOs are taking action to reinvent their business. 60% of Canadian CEOs (64% globally) have taken at least one significant action to change how their organization creates, delivers, and captures value.

More Canadian CEOs than those surveyed globally (58% versus 54%) are planning acquisitions in the next three years to access new capabilities and talent.  

Mirroring global trends (38%), 37% of Canadian CEOs say their company has begun competing in new sectors, with industrial manufacturing, health services, consumer, and real estate leading the way.

Regarding climate change, Canadian CEOs are harnessing emerging opportunities from decarbonization to create value. Almost three quarters (72%) have initiated climate-related investments in the last 12 months. This is less than global CEOs (81%), which may reflect how some Canadian CEOs aren't seeing the upside of climate action.

Actions for Canadian CEOs:

• Empower AI adoption: Identify key skills, provide training, and be transparent about job evolution.
• Collaborate for reinvention: Acquisitions, partnerships, and information sharing can drive innovation.
• Move beyond climate compliance: Focus on strategic decarbonization to create new revenue streams.

About the 28^th Annual PwC Global CEO Survey:

PwC surveyed 4,701 CEOs across 105 countries and territories from October 1, 2024 through November 8, 2024. The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,701 CEOs. The full findings can be accessed here.

About PwC Canada

At PwC Canada, our purpose is to build trust in society and solve important problems. More than 6,500 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 370,000 people in 149 countries. Find out more by visiting us at: www.pwc.com/ca.html. 

SOURCE PwC Management Services LP

For media inquiries please contact: Anuja Kale-Agarwal, National Communications Director, PwC Canada, [email protected]