EY CEO Outlook Pulse Survey 2024 Highlights Tech Investments, Optimism, and M&A Trends

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EY CEO Outlook Pulse Survey 2024 Highlights Tech Investments, Optimism, and M&A Trends

According to the EY CEO Outlook Pulse Survey 2024, CEOs are increasingly committing to tech investments as a strategic move towards future growth, as evidenced by a majority of CEOs aligning their organizations with an AI-centric blueprint for innovation and productivity. This focus on technology is seen as essential for both accelerating growth through high-value investments and ensuring data integrity and cybersecurity within their companies.

The survey results indicate a positive outlook among CEOs, with 80% expressing optimism about their companies' revenue prospects and 88% feeling confident about profitability. This sentiment extends to the mergers and acquisitions (M&A) landscape, where 96% of respondents are actively looking to engage in transactions, predominantly through IPOs, driven by factors such as tech acquisition, market expansion, consumer shifts, and supply chain security. Amit Khandelwal, managing partner at EY India, notes the bullish attitude among CEOs and investors towards deals in M&A, highlighting the strategic drivers for acquisitions, such as acquiring technology, new production capabilities, growing market share, adapting to changing customer behavior, and securing supply chains.

While the survey reflects a strong emphasis on tech investments and M&A activities, it also points out a shift in priorities around sustainability issues among CEOs. The importance of sustainability has reportedly declined in the priority list, with financial constraints and a change in boardroom focus overshadowing this aspect. Despite 42% of CEOs facing challenges in making a compelling financial case for sustainability investments, a significant portion recognizes the impact of sustainability on their supply chains and the risks associated with "Green hushing" or being perceived as insincere in their environmental efforts.