Three-quarters of CEOs and C-Suite Executives do not feel “very equipped” to lead around: AI, ESG & climate, mis- and disinformation, geopolitics or the effects of inflation

Executives rank generative AI as their highest priority focus area in 2024, but only 13% are confident in their ability to lead their organizations through AI-driven transformation; and over half of executives believe their company is doing a bad job of reskilling their employees

Despite AI’s role in weaponizing and propelling mis- and disinformation, only 6% of executives believe mis- and disinformation will have a significant impact on their business in 2024

Singapore – March 1, 2024 – The Weber Shandwick Collective’s (TWSC) newly released study, C-Suite Attitudes & Actions in Times of Change, fielded by KRC Research, reveals that three-quarters of CEOs and other C-Suite executives do not feel “very equipped” to lead their companies around major changes and disruptions related to: AI, ESG & climate, mis- and disinformation, geopolitics or the effects of inflation and interest rates.

While over half of executives report that generative AI will be their highest priority focus area in 2024, only 13% of executives are confident in their ability to effectively lead their organizations through an AI-driven transformation; and over half of executives believe their company is doing a bad job of reskilling their employees.

In contrast to the consensus at the recent World Economic Forum’s Annual Meeting regarding the significant risks associated with mis- and disinformation, which is often propelled and weaponized by AI technology, over 90% of surveyed executives do not view mis-and disinformation as a material threat to their companies.

The new research also reveals C-Suite executives’ personal attitudes and priority actions in 2024, related to other business and societal changes and disruptions:

ESG: 55% of CEOs are prioritizing ESG in general, even in the face of anti-wokeism. However, in what may indicate dissonance within the C-Suite, only 28% of other executives are prioritizing ESG.

Geopolitics: Navigating geopolitical conflict falls low on the priority list (18% for CEOs and 21% for C-Suite) and is the lowest ranked of all topics where executives are planning to increase their company’s policy advocacy efforts.

Mis- and disinformation: While mis- and disinformation was ranked the number one threat facing leaders today according to WEF’s Global Risk Report, only 6% of business leaders surveyed say it’s a top priority – and only 1% feel it will impact business.

Political polarization: Half the world’s population lives in a country that will hold an election this year, but despite a surge in political polarization-fueled conflict and violence in most regions of the world, managing polarization is not a priority for the vast majority of executives (93%).

“The increasing prevalence of misinformation and disinformation presents a significant challenge for C-suite leaders in the Asia Pacific, particularly during a year marked by numerous elections. To navigate the growing complexities, accurate and high-quality intelligence and analytics are essential, as well as deep understanding of trends and developments in these areas. It is great that CEOs and other executives acknowledge their concerns regarding their leadership capabilities in the face of AI-driven transformation, geopolitical events, ESG issues, and the impact of mis- and disinformation. To address these concerns, executives will need to  embrace a diverse range of stakeholder perspectives, and leverage data-driven insights to inform their decision-making, and continuously communicate with all key stakeholders, including employees” – notes Tyler Kim, CEO, Asia Pacific, The Weber Shandwick Collective

Executive readiness gaps and priorities: Generative AI

The future is AI-driven, and this advancement has great implications on how leaders make business decisions today.

  • Gen AI is the top priority (51%) among business executives with potential for the greatest impact on business operations and performance over the next few years, yet only 13% feel very equipped to transform their business with AI or to effectively reskill employees (24%).
  • Exploration of AI tech vendors is the #1 action companies are taking or will take this year when it comes to AI (71%), closely followed by exploring new methods for delivering insight and business intelligence to navigate social and technological change (70%).
  • Senior executives also report that understanding AI will test themselves as leaders, with only 13% reporting that they feel personally equipped to oversee an AI-led transformation of their own business.

“AI represents the mother of all transitions, requiring us all to radically alter our perspective,” said Chris Perry, Chief Innovation Officer, Weber Shandwick and Chair, Weber Shandwick Futures. “Navigating this major transformation requires that leaders are actively in Gen AI platforms, understanding both applications and implications. Cultivating a culture of exploration and creating safe spaces for teams to test and experiment are vital.”

Executive readiness gaps and priorities: Mis- and disinformation

Leaders are prepared for the worst, not for the pervasive.

  • Mis- and disinformation was ranked the top threat facing leaders today in WEF’s Global Risk Report, but only 6% of business leaders surveyed say it’s a top priority. And only 1% feel it will impact business.
  • C-Suite leaders are far more prepared to address extreme weather and pandemic threats than they are mis- and disinformation, even though the former may happen once every century and the latter is being spread every day.
  • Reflecting the complex nature of the threat – which may have impacts on an organization’s communications, legal, cybersecurity and financial functions – business leaders concerned about the issue are planning to take a multi-pronged approach, including making adjustments to their organization structures (47%), gathering business intel (42%), identifying and tracking sources of misinformation (42%) and using AI to detect or respond to misleading information (41%).

“As more organizations witness the negative impacts and implications of misinformation on brand reputation and shareholder value, leaders must be prepared to put AI education and training into motion – and quickly,” Perry added. “The AI misinformation arms race has already begun – and our findings clearly illuminate a disconnect when it comes to organizational preparedness.”

Executive readiness gap and priorities: ESG

ESG is still a focus area, despite political and cultural backlash.

  • Despite anti-wokeism, over half of CEOs believe ESG is a priority for their company in 2024.
  • In what may represent disagreement within the C-Suite, only 28% of all other executives prioritized ESG.
  • Taking action around climate and energy transition was only cited by 15% of all executives as being a top priority in 2024. However, among those companies that are prioritizing climate, they are adopting an innovation mindset as opposed to a cost-management approach.
  • Of those companies prioritizing the climate, 67% plan to bring new products and services to market in 2024.
  • From a risk management standpoint, just 41% believe their business is highly prepared for a natural disaster or extreme weather event.

Executive readiness gap and priorities: Geopolitics

Geopolitics is something to ‘monitor and watch’, not an area for significant action or engagement.

  • While navigating geopolitical conflict was a key trend coming out of Davos, it falls low on the priority list (18% for CEOs and 21% for C-Suite): leaders are deprioritizing geopolitics because they don’t feel equipped to deal with it.
  • Amongst all the megatrends, the smallest number of companies plan to increase their engagement around policy and regulatory issues or make adjustments to their internal organizations or governance structures.
  • Only 38% of executives plan to change how they manage their supply chains based on geopolitics.

The findings were uncovered in the 2024 C-Suite Attitudes and Actions in Times of Change survey from Weber Shandwick and KRC Research. You can read more about what this means for business leaders today in The Weber Shandwick Collective’s 2024 UN/PREDICTIONS report.

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About the survey: C-Suite attitudes and actions in times of change

Firms within The Weber Shandwick Collective have been tracking employee and consumer perceptions to assess opinions on confidence in and expectations for businesses – through the COVID-19 pandemic, social unrest over racial injustice, the “great resignation,” evolving ways of working, and the return to the workplace. The latest survey was conducted among 104 private sector, global business leaders (CEO to vice president) representing top product and service MNCs with global operations across NA, LATAM, APAC and EMEA from January 22-29, 2024 to assess 2024 priorities for business across the headline topics that emerged at the World Economic Forum in Davos.

About The Weber Shandwick Collective

The Weber Shandwick Collective (TWSC) is the strategic communications and consulting network. In addition to Weber Shandwick, TWSC brands include Cappuccino, Current Global, dna, Flipside, KRC Research, Powell Tate, Prime Weber Shandwick, Resolute Digital, ThatLot and United Minds. The Weber Shandwick Collective is part of the Interpublic Group (NYSE: IPG). For more information, visit https://webershandwick.asia/, https://thewebershandwickcollective.com.

About KRC Research

KRC Research is a global insights-driven communications and marketing research consultancy within The Weber Shandwick Collective (TWSC). A unit of the Interpublic Group of Companies (NYSE: IPG), KRC Research offers the quality and custom service of a small firm with the reach of a global organization. Comprised of highly specialized social science research professionals, KRC has delivered research and insights to corporations, governments, not-for-profit organizations, and the communications firms that represent them for more than three decades. For more information, visit www.krcresearch.com.