In a world marked by accelerating change and increasing complexity, business leaders are gearing up to navigate a dynamic macroeconomic landscape. The challenges they face are manifold, ranging from security and sustainability to generative AI and geopolitical turmoil. Amid this volatility, they must also focus on driving growth and innovating to maintain their competitive edge.
According to the recently introduced Accenture Pulse of Change: 2024 Index, the rate of change affecting businesses across six key areas has risen dramatically. Over the past four years, it surged by an astonishing 183%, with a 33% increase in the past year alone. An overwhelming 88% of C-suite executives anticipate an even faster pace of change in 2024.
Leading the charge in causing business disruption is technology, which catapulted from sixth place to the number one spot in just a year. Advances in generative AI have been a game-changer, and most leaders expect technology-driven disruption to escalate further in 2024. While resilience, cost optimization, and short-term value remain top priorities, leaders now view generative AI as a revenue growth opportunity rather than a cost-cutting measure.
The second most significant cause of business change is talent-related issues, such as skills shortages and employee engagement challenges. Almost half (42%) of C-suite leaders cite a shortage of skills as one of the top three obstacles to responding to change effectively. This underscores the critical importance of prioritizing talent strategy, particularly in light of new technologies.
Generative AI’s transformative impact extends beyond technology itself. It is estimated that Gen AI will affect 40% of working hours across all industries. This highlights the need for leaders to focus not only on technology but also on training their workforce to harness the potential of AI effectively.
While businesses must prepare for technology-driven disruption, only 27% of C-suite executives feel that their organizations are ready to scale up generative AI. However, there has been a notable acceleration in client efforts over the past year, with a shift from “proof of concept” to “scale” for productivity. This trend is observed across various industries, with Financial Services and Life Sciences leading the charge.
To fully harness the potential of generative AI, companies must establish a robust foundation of AI by adopting and scaling it now. However, it is estimated that less than 10% of companies possess mature data and AI capabilities. Additionally, leaders are approaching AI investments with caution due to concerns about responsible AI use, particularly in Europe.
A Responsible AI framework is crucial for all organizations, allowing them to create value while mitigating potential risks and building trust. This approach involves understanding AI’s impact on the workforce and aligning AI strategies with an organization’s purpose and core values.
Generative AI is emerging as the catalyst for business reinvention, affecting every aspect of companies and reshaping competitive landscapes. To embrace this change effectively, business leaders must focus on building their digital core, including cloud, data, and AI, while adopting a human-led approach to innovation.
Key actions for business leaders include leading and learning in new ways, rethinking workflows, reshaping the workforce, and prioritizing comprehensive learning to ensure employees have market-relevant skills. This people-centric approach will be essential for organizations looking to turn disruption into an opportunity for growth in 2024.
