David Capocci is the managing partner of KPMG Luxembourg. “I’m convinced that AI will help people to focus on what creates more value, removing the repetitive, low value-added tasks,” he told Paperjam, talking about the potential impact of AI on companies in the future. Archive photo: Romain Gamba (2023)

David Capocci is the managing partner of KPMG Luxembourg. “I’m convinced that AI will help people to focus on what creates more value, removing the repetitive, low value-added tasks,” he told Paperjam, talking about the potential impact of AI on companies in the future. Archive photo: Romain Gamba (2023)

Despite the economic and geopolitical volatility seen in recent years, roughly seven out of 10 CEOs--both on a global level and in Luxembourg--are confident about the global economy, found KPMG’s annual CEO outlook survey. KPMG Luxembourg’s managing partner David Capocci sat down with Paperjam to talk about CEO optimism, AI and return-to-office trends.

Luxembourg-specific from the 2024 edition of the KPMG CEO outlook survey, which polled 1,325 business leaders around the world overseeing companies with revenues of at least $500m, were released on 30 October 2024. KPMG Luxembourg’s managing partner shared some of the key takeaways from the 10th anniversary of the survey with Paperjam.

Confidence remains relatively high

The first edition of the survey--back in 2015--saw 93% of global CEOs report that they were confident about the global economy, said Capocci. Things have changed over the last 10 years and the world has weathered crises like the covid-19 pandemic, inflation, supply chain disruptions, Russia’s full-scale invasion of Ukraine, conflict in the Middle East and more. There has been a reduction in optimism over the years, but 72% of global CEOs still said they were confident in the global economy in this year’s survey, said Capocci. That figure stood at 70% when looking specifically at CEOs in Luxembourg.

Many CEOs have become used to dealing with an ever-changing world, he argued. They have become more resilient and can focus on investing in technology or developing their workforces.

In addition, 80% of Luxembourg CEOs are confident about the country’s growth prospects (compared to 78% globally), found the survey. All the CEOs polled in the grand duchy (and 92% of CEOs globally) expect to increase their company’s headcount over the next three years. “That really shows there is a confidence in the Luxembourg market,” said Capocci. There’s more confidence in the country’s political certainty, he explained. The national elections are over, a government is in place and they can work on their agenda.

And when it comes to M&A, there’s appetite in Luxembourg. Compared to last year, “we have two times more CEOs that have an appetite for mergers and acquisitions--growing inorganically, looking at the opportunities that are on the market.”

AI not expected to affect job numbers

Technology is a topic “that is on everyone’s agenda,” said Capocci. The aim is to understand how to implement generative AI throughout organisations to improve connectivity and processes. Improving processes and investing in technology is a top priority for Luxembourg CEOs, and this will also help to tackle inflation and increasing costs. Half of Luxembourg CEOs surveyed said they were investing in buying new technology; half said they were investing in developing the skills and capabilities of their workforces.

That being said, despite the increased interest in technology, all the Luxembourg CEOs surveyed (and 76% of CEOs globally) said that AI would not fundamentally impact the number of jobs in their company. Instead, it would lead to upskilling and redeployment of existing resources. “I’m convinced that AI will help people to focus on what creates more value, removing the repetitive, low value-added tasks,” said Capocci.

But CEOs want staff back in the office

The 2023 edition of the survey found that 64% of global CEOs anticipated a full return to the office in three years, noted Capocci. In this year’s survey, that figure climbed to 83%. In Luxembourg, all the CEOs polled expect a full return to the office in the coming years.

An interesting finding from the global results is that the return-to-office expectations increase as the age of the CEO increases, he added.

Diversity

Six out of 10 Luxembourg CEOs consider gender equity critical to helping companies meet growth ambitions, while four out of 10 say that progress on diversity and inclusion has moved too slowly in the business world. “So it’s on the agenda,” said Capocci. “There is an acknowledgement that we are not where we like to be.” Eighty percent said workplace diversity will require changes across senior leadership, found the survey.

KPMG’s survey of 1,325 global CEOs was conducted between 25 July and 29 August 2024 and covered 11 sectors: asset management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology and telecommunications.

Find the full survey results .

Related articles