As global uncertainty reshapes the business landscape, top CEOs are adapting their strategies to address emerging challenges in geopolitics, trade, technology and workforce dynamics. A recent report by the Oliver Wyman Forum, in collaboration with the New York Stock Exchange, reveals how leaders are steering their companies through these transformative times.
Geopolitical risks and trade realignment
Geopolitical instability, protectionism, and government industrial policies have risen as top concerns for CEOs. According to the report, 60% of surveyed CEOs plan to reduce exposure to high-risk regions over the next two years. This realignment reflects a broader pivot away from globalisation at all costsglobalisation-at-all-costs toward regionalisation and supply chain diversification.
Actions include prioritising supply chain resilience (50%) and adopting more flexible operating models through dual sourcing or reduced lead times (49%). Few CEOs (16%) are reshoring operations domestically, opting instead for partnerships in geopolitically aligned regions to maintain cost efficiency. This approach aligns with trends like the US Inflation Reduction Act, which has boosted clean energy and transportation investments by 52% since its passage in 2022.
Harnessing AI for growth and efficiency
Artificial intelligence (AI) has emerged as a critical tool for driving both revenue and cost efficiency. Nearly 98% of surveyed CEOs view AI as an opportunity, not a risk. They are leveraging AI to improve operational efficiency, workforce productivity and customer insights, while mitigating risks like cybersecurity threats and biases in AI models.
However, the stakes are high. More than 40% of CEOs cite the risk of not moving fast enough on AI as a top concern, underscoring the urgency of adopting AI-driven strategies. Large companies are leading the charge, with 64% aiming to be market leaders in at least one AI use case, compared to 30% of smaller firms.
Evolving workforce strategies
Workforce management has become increasingly complex, driven by demographic shifts, technological disruption and evolving employee expectations. CEOs are focusing on breaking down organisational silos (59%) and decentralising decision-making (53%) to enhance agility and collaboration.
To address employee concerns about AI-related job disruptions, 31% of CEOs are investing in reskilling and upskilling their workforce, particularly in critical areas like AI and cybersecurity. Additionally, leaders are nurturing a unified corporate culture, with 88% reporting frameworks to support employees during crises.
Balancing growth and resilience
CEOs are balancing aggressive growth strategies with financial prudence. While 55% prioritise organic investment in new revenue streams, an equal proportion focus on capital efficiency and cash flow management. This dual emphasis reflects the need to innovate while maintaining financial stability amid high interest rates and volatile inflation.
Preparing for future disruptions
Acknowledging that geopolitical surprises are now a permanent feature of the business environment, two-thirds of CEOs are strengthening crisis management frameworks. Large firms are particularly proactive, with 73% developing governance structures and 43% conducting geopolitical scenario planning. This preparation is critical as conflicts now involve nations accounting for 27% of global GDP, up from 12% in the 1990s.