98% of UK C-suite executives are optimistic for a year of transformation and growth
Mazars, the international audit, tax and advisory firm, has released its latest C-suite barometer: outlook 2024 for the UK. Optimism and confidence are at their highest recorded by the Mazars C-suite barometer. 96% of UK C-suites say that their company grew in 2023, up from 87% the previous year), and in contrast to 89% globally. Furthermore, almost all (98%) predict growth in 2024, and 60% of these say this growth will come organically.
The major topic on the leadership agenda is transformation through IT and new technology as a top strategic priority. 87% of UK C-suite executives believe that generative AI will have an impact on their organisation, with more than half saying this will be a major impact. More than two thirds say their organisation already uses AI for internal processes and/or products/services – although this is slightly lower than the three quarters we find globally. However, over half (57%) of UK C-suite executives express ethical concerns over AI, (although globally it’s 74%) and 92% are seeking more regulatory guidance.
Elisabeth Maxwell, deputy CEO, commented: “It is very encouraging to see such optimism among our UK clients for the year ahead despite the uncertain conditions that all businesses are facing. Companies are willing to put investment in again and there are exciting developments on the horizon for AI. The feedback that Mazars C-suite barometer has highlighted is that more clarity is needed from regulators to enable businesses to make the best of the opportunities provided by potentially transformational technology and to enable companies to quantify success in sustainability practices.”
Key areas of investment for the UK are customer acquisition and brand strategy/positioning, followed by sustainability initiatives. Compared to other leaders globally, those in the UK have a stronger focus on engaging government/regulators, and less on external growth opportunities. An overwhelming seven in ten thinks more government regulation is important.
Over half (56%) of UK C-suite executives say their organisation produces a sustainability report compared to 71% globally, and furthermore, the proportion of leaders in the UK who are budgeting for sustainability implementation and reporting is also down from 75% last year. The reason for this is believed to be that for those in the UK producing or planning a report, understanding regulation is now twice as big a challenge than last year, making it the equal biggest challenge alongside data capture/quality. Many UK leaders feel they lack in-house expertise to tackle sustainability properly, compared to leaders globally, who are more concerned about coverage on climate and carbon.
Partner and member of the Mazars group executive board, Mark Kennedy, commented: “The high levels of optimism and renewed confidence among our respondents provide a good indicator of how businesses are likely to progress this year. In the face of volatility, the C-suite has demonstrated resilience and agility enabling them to continue investment and transform business while addressing the challenges and opportunities of emerging technology, expansion plans and the ESG agenda, setting their businesses up for sustainable growth. In what may be a bounce forward year for businesses, there will still be tough decisions to make, yet we can see an increasing consciousness and confidence in the priority areas that will secure sustainable economic growth in the global economy.”
International expansion is also a rising business priority both in the UK and globally. Many UK firms looking at international expansion in the year ahead said that the USA would be their top destination.
