Leading CEOs of Consumer and Retail businesses have flagged economic uncertainity, geopolitical complexities and the adoption of Gen AI as the top three challenges in 2024according to a survey released by KPMG.

The KPMG 2024 CEO Outlook revealed that 82 per cent of Consumer and Retail CEOs believe they’re on a growth trajectory but only 59 per cent feel the same way about broader economic growth.

Despite the challenges, their convictions about sector growth continue to strengthen, up to 81 per cent from 76 percent in 2023. “This positive sentiment may be fueled by the Consumer and Retail sector’s position within the “real economy,” providing essential goods and services that remain relevant even in times of economic uncertainty,” the survey noted.

Nearly 81 per cent of the head honchos recognised Gen AI as a key investment area, particularly in sales and marketing. The survey added that the focus is shifting from experimental pilots to capturing tangible return on investment.

Just over half of Consumer and Retail CEOs are confident that they will see a return on their Gen AI investments within three to five years.

At the same time, 61 per cent identified ethical challenges as some of the most difficult issues to address when implementing AI within their businesses. Majority of CEOs also believe there is a need for a robust regulation.

In a statement, Nikhil Sethi, Partner and Head, Consumer Goods, KPMG in India said, “CEOs in the Consumer and Retail sector are navigating a complex and challenging landscape, but their confidence in the industry’s future is reassuring.“

“They need to navigate multiple areas including driving growth in a time when spending capacity is muted and competition is more, managing profitability in a generally inflationary environment and complying with increasing regulation. Data and analytics are a key for this, and GenAI as a technology to manage this complexity is key. Organizations that embrace this into their ways-of-working are likely to get ahead.”