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Joaquim Cardoso MSc.
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January 4, 2024
This executive summary is based on the article “What CEOs talked about in Q4 2023: Economic concerns, Geopolitical uncertainty, and Cost Optimization; AI drops for first time”, published by IOT Analytics and written by Philipp Wegner, on December 21, 2024.
What is the message?
The Q4 2023 analysis of CEO discussions reveals three prominent themes—economic concerns, budget, and cost optimization, along with geopolitical uncertainties.
Generative AI, a once-thriving topic, experienced its first decline.
ONE PAGE SUMMARY
What are the key points?
Economic Concerns:
CEOs globally expressed worries about interest rates (up 21.4% QoQ) and inflation (still a top topic). The U.S. Federal Reserve’s decision to maintain interest rates added a layer of stability.
Budget and Cost Optimization:
With rising interest rates, CEOs focused on budgeting (up 17.4% QoQ) and cost optimization (up 21.4% QoQ), indicating a cautious approach toward 2024. AWS introduced a Cost Optimization Hub in response to this trend.
Geopolitical Uncertainty:
Ongoing conflicts (Russo-Ukraine war, Israel-Hamas) and the potential U.S. government shutdown fueled discussions on geopolitical risks (up 22% QoQ). CEOs highlighted the impact on segments like the Middle East.
Declining Themes:
Generative AI witnessed its first decline (down 21.3% to 7.8% of calls), along with related topics like AI, GPUs, AI models, and Large Language Models (LLMs).
What are the key statistics?
Interest rates mentioned in 38% of calls.
Inflation remained a top topic in 44.4% of calls.
Budget discussions rose to 31% of calls.
Geopolitical risks increased to 8.2% of calls.
Generative AI declined to 7.8% of calls.
What are the key examples?
CEOs discussed the impact of interest rates on consumer sentiment (e.g., eBay) and the uncertainty around rate changes (e.g., TELUS International).
Optimization efforts focused on operational expenses, with AWS launching the Cost Optimization Hub.
Concerns about a U.S. government shutdown were voiced by CEOs like L3Harris Technologies and Appian Corporation.
Conclusion
CEOs are navigating economic challenges marked by interest rate concerns, budget prioritization, and geopolitical uncertainties.
Generative AI’s decline suggests a reevaluation of technology trends, while CEOs prepare for potential government actions and optimize costs amid economic uncertainties.
Stakeholders should assist CEOs in adapting strategies to mitigate risks and excel in the prioritized areas.
To read the original publication, click here.
