Accenture 2024

Pulse of Change Index

The rate of change affecting business reached
an unprecedented height in 2023 and is expected
to accelerate even more in 2024.
 Putting a number on change
The Accenture Pulse of Change Index, built on a
range of key business indicators such as labor
productivity and IT spending, quantifies the change
companies are facing, across six factors - Technology,
Talent, Economic, Geopolitical, Climate and
Consumer & Social. It then compares this data to a
survey of 3,400 C-suite executives on how they view
the impact of each factor on their organizations, as
well as their preparedness to respond.

Accenture 2024 Pulse of Change Index 2

 Key Findings
The rate of change affecting businesses has risen
steadily since 2019, by 183% over the past four years
and by 33% in the past year alone.

Most C-suite executives anticipate an even faster rate

of change in 2024, but more than half say they are not
fully prepared to respond.

Catapulted by advances in generative AI, Technology

change increased the most in 2023, rising to the No. 1
cause of change from No.6 in 2022.

Talent, the No. 2 cause of business change, is ranked

No. 4 by C-suite leaders – a perception gap

Accenture 2024 Pulse of Change Index 3

 The Index indicator analysis reveals that the rate of change affecting businesses has risen steadily since 2019—rising 183% over the
past four years and 33% in the past year alone. In the survey, most (88%) of C-suite executives expect this change to accelerate even
more; 60% see it as an opportunity, and 68% expect revenue growth to accelerate in 2024.

Annual growth rate of disruption between 2019 and 2023 (in %) What level of change do you expect in 2024 relative to today?

+183% Global
4-yr growth rate
(2019 – 2023)
33% Higher change 88%

35%
No change 10%

50%
Lower change 2%
5%

2019-2020 2020-2021 2021-2022 2022-2023

Accenture 2024 Pulse of Change Index 4

 The C-suite survey reveals that more than half (52%) of them don’t feel fully prepared to respond to the change
they will face in the 2024 business environment.

To what extent is your organization prepared to respond to any changes in your business environment heading into 2024?

Environmental 56% 44%

Geopolitical 55% 45%

Economic 53% 47%

Consumer & Social 51% 49%

Technological 47% 53%

Talent 47% 53%

52% Fully prepared

Not fully prepared

Accenture 2024 Pulse of Change Index 5

 Accenture Pulse of Change: 2024 Index
Analysis of business disruption C-suite leaders' perception

Technology was the top cause 2023 2022 2023

of change in 2023, driven
primarily by advances in AI #1 Technology Talent #1 Technology
Among the six factors, the Index indicator
analysis reveals that Technology change #2 Talent Economic #2 Geopolitics
increased the most, catapulted by advances in
generative AI. It was the top cause of change
in 2023, up from No. 6 in 2022. #3 Climate Geopolitics #3 Consumer & Social

In the survey, C-suite executives agree, saying Consumer

technology is the No. 1 cause of business #4 Economic #4 Talent
& Social
change. A significant portion (61%) expect the
pace of technology disruption to accelerate
#5 Geopolitics Climate #5 Economic
even further in 2024. Notably, 76% saw
generative AI as more of an opportunity than a
threat, and more beneficial to revenue growth Consumer
#6 Technology #6 Climate
& Social
than costs reduction.
*Ranking is based on % of increase *Based on a global survey of 3,450
measured from 2022 to 2023 for each C-suite executives, accross 20 countries
of the six factors. and 19 industries.

Accenture 2024 Pulse of Change Index 6

 According to the survey, almost half (47%) of C-suite executives don’t feel prepared for the accelerating rate of technological
change. Further, only 27% claim their organizations are ready to scale up generative AI, and 44% say it will take more than six
months to do so and take advantage of the potential benefits.

How soon will your organization be ready to scale up Generative AI technologies and take advantage of the potential benefits?

27% 26% 33% 25%

We are currently ready to scale up generative AI

29% 30% 31%

25% We will be ready within 3-6 months

We will be ready within 6-12 months

35% 35% 36% 35%
44% 45% 41% 44% We will be ready within 12-18 months

8% 1% 10% 5% 8% 1%
We will be ready within 18-24 months or longer
Global North America Europe APAC

Accenture 2024 Pulse of Change Index 7

 72% of C-suite leaders say they are approaching investments with caution because of societal concerns about the responsible use of
AI. Respondents in North America and Asia Pacific were least deterred by backlash against generative AI, while more than three
quarters of C-suite leaders in Europe are approaching it with caution.

To what extent do you agree or disagree with the following statement: “The recent backlash on generative AI
(e.g., policy issues, lack of accuracy, low intial ROI) will cause our organization to slow down planned investment in GenAI in 2024.”

Global Regional

Strongly agree 9% 72% 4% 8% 9%

Strongly agree
Agree 63% 54%
52%
69% Agree

Neither agree 4% 2% Neither agree

nor disagree 8% nor disagree
31% 2% Disagree
Disagree 21% 27%
18%
7% 3% 4% Strongly disagree

Strongly disagree 3% North America Europe APAC

Sample size = 2,091

Accenture 2024 Pulse of Change Index 8

 Accenture Pulse of Change: 2024 Index
Analysis of business disruption C-suite leaders' perception

Talent, the No. 2 cause of 2023 2022 2023

business change, is ranked
No. 4 by C-suite leaders – #1 Technology Talent #1 Technology
a perception gap
The Index indicator analysis places Talent, #2 Talent Economic #2 Geopolitics
including issues such as skills shortages and
lack of employee engagement, just behind
Technology as a top cause of change in #3 Climate Geopolitics #3 Consumer & Social
2023. Yet in the survey, C-suite leaders rank it
fourth, behind Geopolitical and Consumer & Consumer
#4 Economic #4 Talent
Social. This gap in perception underscores & Social
the importance for businesses of making
their people a top investment priority as they #5 Geopolitics Climate #5 Economic
tap the potential of new technologies such as
generative AI. Consumer
#6 Technology #6 Climate
& Social

*Ranking is based on % of increase *Based on a global survey of 3,450

measured from 2022 to 2023 for each C-suite executives, accross 20 countries
of the six factors. and 19 industries.

Accenture 2024 Pulse of Change Index 9

 42% of C-suite leaders say skills shortage is one of the top 3 challenges that would hold back their organizations’ ability to
respond to change. It is particularly a major concern in the healthcare industry.

Which of the following challenges do you think your organization will encounter that will impact your organization’s ability to respond to change?
Shortage of people with skills to manage transformations (% who ranked it top 3), by industry

Health 51%
Industrial 46%
Auto 46%
M&E 45%
Transport 45%
Public services 45%
Insurance 44%
Chemicals 44%

42%
S&P 43%
LS 43%
CG&S 42%
Utilities 41%
Banking - Retail 40%
Natural resources 39%
Energy 38%
Capital markets 37%
Retail 37%
High Tech 36%
A&D 31%

Accenture 2024 Pulse of Change Index 10

 Research Methodology
Accenture’s Pulse of Change Index compares findings from two major inputs: • Climate, which is based on indicators such as climate-related
disasters and direct economic loss attributed to natural disasters,
1. An analysis of change affecting businesses globally, caused by
looks at the risks related to environmental issues, as well as the
six major factors:
financial cost implications of climate-related regulations for
• Technology, which is based on indicators such as IT spending and VC businesses;
funding on emerging technologies, reflects the pace and scale at • Consumer & Social, which includes indicators assessing social unrest
which technologies, such as generative artificial intelligence, are and household savings, reflects the overall social climate as well as
adopted and implemented; consumers’ confidence in the future.
• Talent, which includes indicators measuring the risk of labor To evaluate both the rate and nature of change, the Index computes, through
shortages, level of employee engagement, wage costs and labor AI led data modeling, 40 proprietary and public data series covering 2019 to
productivity, reflects the overall talent environment from a November 2023 from leading institutions such as the Organization for
quantitative and qualitative perspective; Economic Cooperation and Development (OECD). International Monetary
• Economic, which includes macroeconomic, financial and business Fund (IMF) or the United Nations Sustainable Development Goals (UN SDG), .
indicators, reflects the overall economic disruption, financial volatility It quantifies the change businesses are facing and determines the rankings of
and business outlook; the top six causes of change by comparing their respective increases from
2022 to 2023. This approach identifies the specific change factors that had
• Geopolitical, which includes indicators measuring geopolitical risk, the most substantial impact on the overall rate of change in 2023.
number of economic sanctions and number of cyberattacks, reflects
changes in war and conflicts, trade tensions and cybersecurity; 2. A global survey of more than 3,400 C-suite executives, conducted from
October 10 to November 14, 2023 across 20 countries, 19 industries and a
full range of corporate functions, captured their perceptions of change,
which then were compared with the analysis of business disruption.

Accenture 2024 Pulse of Change Index 11

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