Leaders’ expectations regarding the Spanish economy are improving. 98% of them plan to increase their headcount by the end of the year, improving their outlook by eight points compared to the same period in 2023, as revealed in the “KPMG CEO Outlook 2024” report. “Managers maintain their commitment to employment and reinforce the weight of ESG issues and generative AI as levers for company growth, always putting their professionals at the center of their strategies and also considering the rest interest groups,” says the company’s president for Spain, Juanjo Cano.
The report also detects an improvement in the conditions of its own companies. 76% of managers surveyed are confident in their growth over the next three years. Even if this percentage is 10 points lower than that of 2023, it is the same as that recorded in the group of countries analyzed. Furthermore, the percentage of managers who do not have confidence in the growth of their company in the medium term has not changed compared to the last edition and remains at 4%. In fact, billing forecasts confirm the optimism of Spain’s top executives: All respondents expect their income to increase over the next three years and 68% estimate that this increase will be greater than 2.5%. This is the highest percentage among the eleven countries analyzed in the report. However, the report invites us not to get carried away by this good data. KPMG highlights that during “these years, business leaders have had to define their strategies to adapt to the immediate challenges that presented themselves, while supporting the future growth of their organization. In fact, 88% of CEOs feel empowered. pressure to ensure the long-term prosperity of their organizations.
Regarding the investments planned for the coming months, 60% of Spanish managers will choose to do so in technology, regardless of the economic situation. However, 72% believe that this investment will only start to bear fruit for at least three years. The growth in commitment to artificial intelligence is remarkable. The implementation of AI is, after initiatives targeting the environmental, social and governance (ESG) area, the strategic priority put forward by a higher percentage of respondents (16% and 22% respectively). A further 16% marks the adoption of measures to address possible inflationary pressures and cost increases.
Regarding ESG policies, 78% of Spanish managers assure that they have integrated these issues into their business strategies as a lever for value generation, transforming them into a determining factor in the relationship with the customer and the brand image, two areas in which I believe will have the most impact. Concerning Generative Artificial Intelligence, 78% of CEOs who participated in the survey are concerned about ethical aspects. In addition, the expansion of the use of this new technology puts the issue of security on the agenda since 20% of Spanish respondents believe that cybersecurity is the main risk for the growth of their organization in the medium term. “Strong and ethical planning in business strategy is essential, not only to meet expectations, but also to lead responsibly,” says KPMG Abogados Managing Partner Alberto Estrelles.
However, and despite the interest that Artificial Intelligence arouses in companies and the concern about its impact on the labor market, 80% of managers exclude that this technology will considerably reduce the number of jobswhile recognizing that this will involve updating the knowledge and skills of employees. “CEOs are increasingly aware of the ethical risks associated with AI,” the report explains. For six in ten respondents, the capabilities and skills required by generative AI represent a challenge for its implementation. In fact, only 28% of those surveyed consider that their employees are trained to take advantage of the potential of this innovation.
The document highlights the risks that threaten the Spanish economy and that of the rest of the countries analyzed. Executives surveyed say the biggest ones are those that can compromise operations, cybersecurity and supply chains. In the case of companies in our country, there are also reputational risks for the company. This fear has skyrocketed in 2024, compared to the last edition, highlighting the impact that increased surveillance by interest groups generates on business activity. 60% recognize that their organizations are not ready to respond to this situation.
