According to KPMG’s latest Global Energy CEO Outlook, leaders in the energy sector remain upbeat about growth prospects but approach generative artificial intelligence (generative AI) with cautious enthusiasm. The survey collected the views of 127 CEOs from companies operating in energy and utilities, oil and gas, renewables, mining and chemicals (ENRC) on business and economic outlooks for the next three years.
Economic outlook: rising confidence despite uncertainty
Respondents in the ENRC sector are more optimistic about their companies’ growth prospects than peers in other industries. Confidence in company-level growth rose to 87 percent — a six percentage-point increase from 2022. Sector-wide optimism was also high at 83 percent, up two percentage points year‑on‑year. Three in four ENRC CEOs are generally optimistic about global economic growth over the next three years.
CEOs now cite geopolitical and political uncertainty as the biggest growth risk (19 percent), followed by operational issues (17 percent) and regulatory concerns (16 percent).
Generative AI: a strategic priority tempered by risks
CEOs express faith in digitalization and are investing in generative AI to gain competitive advantage. In the survey, 64 percent said generative AI is a primary investment priority, and 48 percent expect such investments to pay off within three to five years.
However, adoption is tempered by ethical worries: 60 percent agree that generative AI could raise ethical challenges such as plagiarism, data privacy, bias and transparency. Companies are therefore developing policies and practices they can confidently describe and implement.
Cybersecurity is another brake on AI deployment. While AI can help detect cyberattacks, 82 percent of respondents believe it may also open new attack surfaces and lead to novel cybercrime techniques. Despite recent efforts to bolster cyber defenses, only 46 percent of CEOs say their organisations are prepared for a cyberattack. KPMG highlights the need for strong, responsible regulation and a focus on protection and governance.
Talent and return-to-office trends
Most energy CEOs favour a return to pre-pandemic working patterns: 73 percent expect their company to be fully back in the office within three years, an increase of eight percentage points from last year. Ninety-four percent say they would reward employees returning from remote work with favorable arrangements, raises or promotions.
ESG treated as a business foundation
With energy use accounting for about three-quarters of global emissions, ESG (environmental, social and governance) considerations are critical to the sector’s long‑term growth. The survey finds that 78 percent of CEOs have fully integrated ESG into business activity to create value. Twenty-two percent expect ESG to have the greatest impact on customer relationships over the next three years.
KPMG has developed a comprehensive process to support ESG assessment and awareness, including the KPMG ESG Érettségi Felmérés, which organisations can use to gauge their ESG maturity.
Conclusion
KPMG’s research shows energy-sector leaders are optimistic about growth and prioritize generative AI investments, but ethical issues and cyber risks temper adoption. At the same time, ESG is increasingly seen as a core element of business strategy.
