Agility or irrelevance — those are the two choices U.S. CEOs are facing in today's business environment, according to a new report from KPMG. Of the 400 U.S.-based CEOs KPMG surveyed for its "2019 U.S. CEO Outlook" report, most agree that being too slow can lead to obsolescence, with 63% believing they need to improve innovation processes and execution over the next three years to remain competitive and resilient. Others are taking a more inorganic approach — 81% plan to pursue strategic partnerships and mergers and acquisitions to compete with potential threats. That being said, U.S. CEOs are more positive about the economic outlook for the next few years compared to CEOs overseas.

Positive and resilient

"Now that the economic expansion is likely to break all previous post-World War II records in terms of length, it's unsurprising that CEOs are feeling positive," Constance Hunter, KPMG's chief economist, says in the report. Nearly all (91%) of the surveyed U.S. CEOs feel confident in the growth prospects available for the U.S., while 87% are confident the growth abilities of the global economy, which may be why they are more focused on global expansion than their international counterparts. Three out of four U.S. CEOs expressed interest in expanding emerging markets, primarily in the Central and Latin America regions. They are also interested in prioritizing countries and regions that are part of China's Belt and Road Initiative, a global development strategy adopted by the Chinese government involving infrastructure development and investments in 152 countries. Beyond expansion, disruption is top-of-mind for U.S. CEOs — the majority say they prefer being the disruptor in their sector than waiting on being disrupted by a competitor. However, emerging risks are causing CEOs to take a cautious approach, with fewer CEOs challenging or disrupting business models in 2019 than in 2018, says KPMG's Lynne Doughtie. The slideshow above highlights the ten risks U.S. CEOs think pose the greatest threat to their organizations' growth. Some CEOs may see protecting their core business from threats as being truly resilient, but it is still important for business leaders to anticipate and manage potential disruptors to better mitigate risks and remain relevant in today's competitive ecosystem, explains the report.

Technology risks and opportunities

Technology is redefining industries around the world, as it serves as a top growth driver and risk. Specifically, artificial intelligence (AI) is on top of many CEOs' agendas, however, KPMG found that many view AI in a contradictory fashion. CEOs do not believe their companies have made significant progress in AI implementation since 2018, but at the same time, they are also most likely to use AI in decision-making. They also don't see AI projects yielding results as fast as they did in 2018. Although technology and AI, in particular, can be more advantageous to an organization when implemented early, just 32% of CEOs say they are prioritizing new technology in 2019; the other 68% are aiming their attention in developing their workforce and capabilities as a means to improve their organizations' resilience. The ability to balance technology's risks and opportunities is imperative for staying competitive, but CEOs recognize that even in a technology-driven era, it's important to take a "people first" approach, says the report. To read the full "2019 U.S. CEO Outlook" report, visit KPMG's website. Related: 

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