Introduction

In 2023 we surveyed 35 CEOs in Albania and 31 CEOs in Kosovo as part of PwC’s 27th Annual Global CEO Survey. We gathered the views of the CEOs on the global and local economies and the opportunities and challenges they are facing. 

Based on the survey results, economic optimism doubles, yet almost half of CEOs in both countries do not believe their businesses will be viable in a decade from now as tech and climate pressures accelerate.

One of the key findings of our CEO Survey is that 44% of leaders in Albania and 55% in Kosovo think that their business will not be economically viable within the next 10 years - if they continue on their current path.

The reinvention imperative this implies is in the attention of many CEOs. As they anticipate the magnitude of changes barrelling towards them, these leaders conclude that they need to be more transformative in their approach if their organisation is to thrive in the decade ahead.

• AI opportunity

CEOs in Albania and Kosovo overwhelmingly see generative AI as a catalyst for reinvention that will power efficiency, innovation, and transformational change. 50% of Albanian CEOs and 52% of Kosovar CEOs believe it will significantly change the way their company creates, delivers, and captures value in the next three years.

CEOs are also not as optimistic about the short-term impact. Over the next 12 months, only one-third of Albanian CEOs (32%) and 35% of Kosovar CEOs expect Gen AI to improve the quality of their products or services and 24% (Albania) and 23% (Kosovo) say it will enhance their ability to build trust with stakeholders. Contrary from their global peers, which are way more optimistic for the next 12 months impact - with 58% of them expecting that Gen AI will improve the quality of their company's products or services, and 48% of them expecting that Gen AI will enhance their ability to build trust with stakeholders. 

• Progress on Climate Priorities

As CEOs establish priorities, many are seeing the climate transition as an industry disruptor containing distinct opportunities in addition to risks. Nearly 20% of Albanian CEOs and 10% of Kosovar CEOs expect climate change to shift the way they create, deliver, and capture value over the next three years. While on a CEE and Global level, 26% and 30% of CEOs expect climate change to impact their business.

Some also expect better outcomes for their business - 15% of Albanian CEOs expect it to positively impact revenue and 26% expect it to positively impact profitability. While in Kosovo, these numbers differ, indicating a higher percentage of Kosovar CEOs that expect a positive impact in revenue and profitability. 

50% of Albanian CEOs and 36% of Kosovar CEOs note having made progress on or completed incorporating climate risk into financial planning (with 24% and 39% noting no plans to do so, respectively). While 36% on regional level, and 45% on global level have made progress or incorporated climate risk into their financial planning. 

• The reinvention imperative

As CEOs become more aware of the megatrends facing businesses globally, survey respondents expressed increased concern around their long-term business viability. 44% of Albanian CEOs and more than half (55%) of Kosovar CEOs note they are concerned their businesses will not be viable beyond the next decade without reinvention - up from 39% and 45% respectively in 2023. 

But while CEOs are taking action, they are faced with a number of challenges. 58% of Albanian CEOs and 61% of Kosovar CEOs cite the regulatory environment as inhibiting their ability to reinvent their business model to at least a moderate extent, 44% and 36% respectively point to competing operational concerns, and 41% of Albanian and 42% of Kosovar CEOs point to a lack of skills in their company’s workforce.

Conclusion

As CEOs are faced with unprecedented disruptions and navigate strategic change, PwC’s 27th Annual Global CEO Survey serves as a token of guidance, empowering leaders to make informed decisions and chart courses of action. 

This year's survey findings underscore CEOs' recognition of navigating pivotal strategic turning points, evoking a sense of urgency towards certain actions. The data further indicates a growing emphasis on the effectiveness of leadership to sustain momentum, predict the businesss environment ahead and foster innovation. 

CEOs may find it imperative to broaden their executive teams by incorporating experts in emerging fields crucial to their company's future viability - such as climate regulation or artificial intelligence. Equally vital is fostering collective ownership of change throughout the company, among various teams - rather than focusing on isolated leads and initiatives.

As we embrace an era of thorough reinvention, CEOs are presented with unprecedented opportunities to reconfigure both their organizations and themselves, enabling them to not only adapt to disruption but also to actualize their aspirations into tangible achievements.