Change is the only constant. But what if the pace of change is unusual and unprecedented? Are C-level executives prepared to deal with the speed and scale of business change? The Accenture Pulse of Change Index, published recently, reveals a number of interesting factors on this point. Per the Index, the rate of change affecting businesses has risen steadily since 2019, by 183% over the past four years and by 33% in the past year alone. Almost 80 percent of C-suite executives expect this change to accelerate even more in 2024.
Pulse of Change Index is built on a range of business indicators such as labor productivity and IT spending, quantifies the change companies are facing, across six factors – Technology, Talent, Economic, Geopolitical, Climate and Consumer & Social. It then compares this data to a survey of 3,400 C-suite executives on how they view the impact of each factor on their organizations, as well as their preparedness to respond.
While 60 percent of the respondents in the survey believe that ‘change’ is a great opportunity for them, over half of them don’t feel fully prepared to respond to the change they will face in the 2024 business environment.
Technology the biggest driver of change
Among the six factors, the Index indicator analysis reveals that Technology change increased the most, catapulted by advances in generative AI. It was the top cause of change in 2023, up from No. 6 in 2022. While this factor was validated in the survey, a significant portion (61%) expect the pace of technology disruption to accelerate even further in 2024. An impressive 76% of C-level leaders see generative AI as more of an opportunity than a threat, and more beneficial to revenue growth than costs reduction.
Despite the realization, almost half (47%) of C-suite executives don’t feel prepared for the accelerating rate of technological change. Further, only 27% claim their organizations are ready to scale up generative AI, and 44% say it will take more than six months to do so and take advantage of the potential benefits.
One of the key reasons for this lack of preparedness, according to the survey, is the recent backlashes on generative AI – especially with regard to the responsible use of the technology. 72% of C-suite leaders in the survey highlighted that they are approaching AI investments with caution because of societal concerns about the responsible use of the technology.
