_Colin Fitzgerald: times are tough, but CEOs should remain optimistic

Given the current widespread economic and political certainty around the world, I was unsurprised to read that CEOs are feeling less optimistic this year. 30% project a decline in global economic growth and are anticipating a dip in their organisations’ revenue, while 16% fewer CEOs than last year would describe themselves as ‘very confident’ in their 12-month revenue prospects.

But it’s not all bad – as the old adage goes, with challenge comes opportunity. The uncertainty of the world around us has prompted more CEOs to look inwards at what they can improve within their own organisations. It was promising to read that more are focusing on their skillsets and how they can bridge any gaps. 

Data handling is one particular area with a shortage of skilled talent. I was startled to read that the information needed by the CEOs versus the information they receive has not improved in an entire decade, and 55% reported feeling unable to innovate effectively. There seems to be a widespread struggle to translate data into actionable intelligence; stunting progress and understandably, causing frustration.

Much of sourcing the right data is linked to another area of keen interest in the report: artificial intelligence. Despite 63% agreeing to the bold statement that ‘AI will have a larger impact on the world than the internet’, nearly a quarter have no plans to pursue it ‘at the moment’. It’s a complex area that requires a great deal of investment, but growing a workforce experienced in using AI systems seems critical to preparing ourselves for the future and our ability to innovate.

As my young son delightedly told me when I asked yet another question about social media: it’s never too late to learn something new. It’s great to think that senior leaders around the world are prioritising retraining and upskilling to develop a culture that’s ready to adapt and move with the times. And those companies that do unlock their internal growth potential and tap into emerging digital technologies will reap the rewards in a big way: by 2030, it is estimated that AI will generate global GDP gains of US$15.7 trillion. I, for one, will certainly be watching this space.

Colin has 32 years of real estate and business management experience. He heads up Knight Frank's International Occupier Services team, focusing primarily on the needs of European and American clients, in particular portfolio strategy and optimisation.