Global executives are increasingly concerned about the long-term viability of their businesses amid growing pressure from generative artificial intelligence (AI) and climate change, according to a PricewaterhouseCoopers survey ahead of Davos.

Some 45 percent of more than 4,700 global business executives surveyed do not believe their business will survive the next ten years unless there are significant changes, a Big Four auditor said.

“There’s 55% who don’t think they need to change radically, and I’d say they’re a bit naive because the world around them is changing so fast,” PwC global president Bob Moritz told the Reuters Global Markets Forum ( GMF ) , before the annual meeting of the World Economic Forum in Davos.

Advances in generative artificial intelligence were the top concern for most respondents, with nearly 75 percent predicting it will significantly change their work in the next three years.

Most expect AI to require new skills training for employees, while many have expressed concerns about cybersecurity risks, misinformation and bias against certain groups of customers or employees.

“If we’re just looking at the same skills, I think yes, there will be an impact,” said Juergen Muller, SAP’s chief technology officer, referring to job losses and a hiring freeze for junior technical positions.

“So you need even better trained people,” Muller told GMF in Davos.

The PwC survey also found that environmental issues are putting more pressure on margins, with four in ten executives saying they accept a lower return on environmental investments.

Less than 50% reported progress including addressing climate risks in financial planning, and 31% said they had no plans to do so.

Overall, companies were more confident about the global growth picture, with 38% optimistic about growth, more than double the number surveyed in 2023.

However, they were also less optimistic about revenue growth over the next year, with 37 percent of them confident in their ability to increase revenue, compared to 42 percent in 2023.

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