Tech Optimism Meets Cautious Growth Outlook
Recent insights reveal a mix of enthusiasm for tech investments and a gloomy outlook for global economic growth. Only 28% of investors believe there will be a moderate to significant improvement in global growth within the next year.
Focusing on specific regions, many investors see the United States as the most appealing place for investment—67% favor it over the next three years. Following the US, India (45%), Mainland China (32%), the United Kingdom (26%), and the United Arab Emirates (26%) are also considered attractive.
Interestingly, US investors themselves are less optimistic about global growth compared to those from other countries. This cautious stance varies significantly based on the market.
A significant factor in these conservative growth expectations is the perceived risk landscape. Over half of those surveyed (55%) feel there is high or extreme exposure to cyber risks in the companies they invest in. Additionally, 53% identify a similar concern regarding technological disruption. Other worries include inflation (44%), macroeconomic fluctuations (43%), and geopolitical tensions (42%), all of which contribute to a tense investment atmosphere.
Focus on Resilience and Transparent AI Strategies
In this unpredictable environment, investors are favoring companies that enhance their resilience by leveraging technology for clear returns. There’s strong support (88%) for companies increasing their spending on cybersecurity, while 73% believe in the importance of business model flexibility, 66% stress regulatory compliance, and 64% emphasize effective supply chain management to safeguard against major risks.
Business model flexibility is increasingly viewed as essential for growth and resilience; approximately 74% of investors expect better performance from companies that explore opportunities outside their traditional sectors. Conversely, 65% acknowledge that companies sticking to old models face higher disruption risks.
The push for resilience and growth also ties into sustainability. A notable 84% of investors believe that companies should either maintain or boost their investments in climate change adaptations. Furthermore, 61% plan to moderately increase their own investments in firms that utilize sustainability data for improved efficiency and performance.
Investors seek greater clarity on how management plans to navigate uncertain times. The top requests for transparency include innovation strategies (47% of respondents), returns and cost savings from AI (42%), investments in AI (42%), competitive positioning (37%), and resilience planning (29%).
According to Nadja Picard, Global Reporting Leader at PwC Germany, clearer insights into these areas will be crucial for stakeholder confidence moving forward.
