Global economic growth is set to improve in the next year, with nearly 60% of CEOs expressing optimism, according to PwC’s 28th Annual Global CEO Survey, unveiled at the World Economic Forum in Davos.

The survey, involving 4,701 CEOs across 109 countries, revealed that 42% plan to expand their headcount by over 5%, while only 17% foresee reductions.

Generative AI (GenAI) adoption is a key driver, with over half reporting efficiency gains and 32% noting revenue growth in 2024.

Despite challenges in AI integration, 49% of CEOs anticipate profitability gains within a year. However, just a third have high confidence in embedding AI into core processes.

The urgency for reinvention is growing, as 40% believe their firms won’t be viable in a decade without substantial transformation. Resource reallocation remains slow, with two-thirds shifting less than 20% of resources annually.

Climate investments are also proving profitable, with 33% of CEOs reporting revenue growth from these initiatives over the past five years.