British business leaders find themselves at a critical juncture. The 28th Annual UK CEO Survey by PwC presents striking evidence that the corporate landscape requires fundamental recalibration, with unprecedented numbers of chief executives acknowledging the need for substantial change to their operational frameworks.
“The world continually changes. Data allows greater understanding of evolving client needs.”
James Bradley
CEO, Churchill Group
The data reveals a sobering reality: 34% of UK CEOs believe their organisations will not remain economically viable within a decade if current trajectories continue. This figure represents a significant increase from 21% recorded the previous year, signalling growing awareness of the challenges ahead. The corporate response has been equally decisive, with 98% of surveyed leaders planning material alterations to their business or operating models within the current year.
The confluence of immediate pressures and long-term uncertainties has created what experts describe as a window of opportunity for bold action. Chief executives must navigate multiple timeframes simultaneously, addressing current challenges whilst positioning their organisations for future success through strategic investments in workforce development and emerging technologies.
Strategic imperatives driving change
The motivation for transformation stems from both defensive and offensive considerations. Two-thirds of surveyed CEOs are developing new business capabilities specifically for growth purposes, whilst 65% focus on creating fresh offerings or entering new markets. The United States emerges as the preferred destination for international expansion among those planning overseas investment.
“Countries are having to compete in a deglobalising economy.”
Jo-Jo Hubbard
CEO, Electron
The scale of anticipated change proves remarkable. Nearly one-third of respondents indicate their entire organisation must evolve, suggesting the transformation extends beyond operational adjustments to encompass fundamental structural shifts. This comprehensive approach reflects the magnitude of challenges facing British businesses and the corresponding level of response deemed necessary.
However, the survey identifies a concerning trend in leadership confidence. Over the past four survey cycles, CEO confidence in three-year revenue growth prospects has declined progressively from 71% to the current level of 57%. This erosion of longer-term optimism coincides with accelerating rates of change across industries and markets.
Workforce transformation as growth catalyst
Successful business model evolution requires corresponding workforce development. The survey reveals that 70% of CEOs are investing in talent retention strategies, whilst 62% focus on recruiting specific skills and capabilities. Additionally, 52% are pursuing upskilling initiatives for existing personnel.
“Employers need to think more creatively about recruitment.”
Samantha Graham
CEO, Clean Sheet
The interdependencies between business strategy and workforce planning have intensified significantly. Organisations must balance multiple approaches to talent acquisition and development, combining internal development programmes with external recruitment and strategic partnerships. Some 29% of surveyed leaders plan to partner for access to key intellectual property or capabilities, whilst 14% consider acquisition routes.
Cultural transformation accompanies these structural changes. More than half of CEOs (54%) personally sponsor transformation projects, reflecting the leadership commitment required for successful change. However, the scale and pace of required transformation has prompted delegation of specific responsibilities, with 31% appointing dedicated transformation leaders and the same proportion establishing specialised transformation teams.
The emphasis on outcomes over processes marks another significant shift. Some 80% of CEOs judge decisions based on results rather than methodology, whilst 29% rely on intuition at least half the time when making critical choices. This balance between data-driven analysis and experienced judgement reflects the complexity of contemporary business environments.
Technology adoption challenges and opportunities
Despite ongoing commitment to technological advancement, implementation barriers persist. The survey shows 61% of CEOs investing in artificial intelligence, generative AI, cloud computing, and data analytics to drive transformation. However, 25% struggle to progress emerging technology projects beyond proof-of-concept stages.
“Companies have decided they need the office to foster collaboration and culture.”
Shobi Khan
CEO, Canary Wharf Group
Skills gaps present the primary obstacle to technology adoption, cited by 47% of respondents. Understanding return on investment follows closely at 44%, highlighting the challenge of quantifying benefits from emerging technologies. Risk concerns, stakeholder buy-in, and solution selection complete the list of primary barriers.
Generative AI provides a case study in expectation management. Last year’s survey found 45% of CEOs expected revenue and profitability increases within 12 months from GenAI implementation. Current results show minimal impact, with 79% reporting little to no profitability change and 78% seeing no revenue improvement.
The technology’s primary contribution has been efficiency gains through task acceleration rather than fundamental business transformation. This outcome has prompted recalibration of expectations, with 36% now anticipating profitability increases within the current year. The learning process emphasises the importance of realistic timelines and comprehensive preparation for technology deployment.
Economic context and regulatory environment
UK businesses operate within a complex economic and regulatory framework that significantly influences transformation strategies. When surveyed at the end of 2024, 61% of CEOs anticipated UK economic growth, representing a substantial increase from 39% the previous year. This optimism provides a foundation for ambitious transformation plans.
“Technology has transformed us from the ground up.”
Hatul Shah
CEO, Sigma Pharmaceuticals Group
The country’s international standing has improved notably. Global CEOs now rank the UK second only to the United States for planned capital expenditure, with 14% selecting Britain compared to 30% choosing America, 12% Germany, and 7% India. This positioning strengthens the case for domestic investment and expansion.
However, regulatory challenges remain significant. Regulatory change constitutes the most commonly cited threat among CEOs who doubt their organisations’ long-term viability, mentioned by 47% of this group. The need for regulation that supports innovation whilst maintaining appropriate oversight creates ongoing tension.
Skills shortages compound these challenges. Some 28% of CEOs questioning their companies’ future viability identify lack of skills as a threat. This finding underscores the importance of public-private collaboration in developing educational frameworks and training programmes that meet evolving business requirements.
The convergence of technological advancement, workforce evolution, and regulatory adaptation creates both opportunities and challenges for British businesses. Success requires coordinated action across multiple domains, with leadership teams capable of managing complex, interconnected transformation programmes whilst maintaining operational effectiveness.