AI Is Transforming CEO Risk Strategies

Q&A with Andrea Guerzoni of EY

Explore how artificial intelligence (AI) is reshaping CEO strategies through insights from EY’s latest CEO Outlook Pulse Survey. Andrea Guerzoni, EY’s Global Vice Chair of Strategy and Transactions, explains how leaders are adapting to risks and disruption in a tech-driven world.

What Is the Purpose of the EY CEO Outlook Pulse Survey?

Ernst & Young (EY), a global professional services leader, released its latest CEO Outlook Pulse Survey in August. The report draws from insights shared by 1,200 global executives and 300 institutional investors.

The survey’s core goal is to track how CEOs respond to global economic uncertainty, technological disruption, and evolving business challenges. Notably, this edition introduced the EY CEO Confidence Index, measuring CEO sentiment across strategic and financial dimensions.

Interestingly, CEOs who express high confidence tend to act boldly. They are more proactive, make quicker decisions, and stay ahead of their peers. As a result, confidence itself becomes a catalyst for business transformation.

How Are Emerging Technologies Reshaping Decision-Making?

Emerging technologies, especially artificial intelligence (AI), are redefining the external environment for CEOs. These tools not only introduce risk but also unlock opportunities. Forward-thinking CEOs are shifting their mindset  seeing disruption as a chance to gain a competitive edge.

Yet, only 38% of respondents feel they are ahead of the curve in adopting these technologies. Still, that number is growing. Many confident leaders use AI to streamline operations, forecast market trends, and create more agile strategies. This shift marks a move away from reactive leadership to one based on foresight and innovation.

What Role Do Digital Twins Play in Risk Strategy?

A digital twin is a virtual representation of a physical object, system, or process. It allows companies to simulate real-world performance in a digital environment. These simulations help CEOs test outcomes, reduce risk, and make data-driven decisions  all before implementation.

Thanks to AI and advanced analytics, digital twins now provide predictive insights that enhance portfolio reviews, optimise assets, and reveal new paths to growth. The survey reveals that many CEOs still struggle with limited data access. Digital twins can bridge that gap by offering reliable, real-time intelligence.

How Are CEOs Embracing Emerging Technologies?

CEOs understand that staying competitive requires rapid adaptation to new technologies. From AI to machine learning and automation, these tools are influencing core areas like supply chains, pricing models, and customer behaviour.

According to the survey, 38% of CEOs plan to implement AI to modernise operations, boost innovation, and improve efficiency. Those who are most confident have already integrated these technologies into their strategic frameworks. They’re not just reacting to change they’re using it as fuel for growth.

Moreover, these leaders are forming strategic alliances, building innovation-focused ecosystems, and exploring disruptive business models. Their proactive approach gives them a significant edge in a constantly evolving market.

Are There Regional Differences in CEO Tech Adoption?

Yes, the survey shows notable regional variations. In Europe, 40% of CEOs identify emerging tech as the top disruptive force. In contrast, only 30% of CEOs in the U.S. see it that way. American executives are more focused on changing consumer behaviour and evolving market demand.

Despite these differences, CEOs across all regions recognize that AI is central to long-term strategy. Whether it’s through automation, predictive analytics, or real-time data processing, they are using tech to unlock efficiency, innovation, and resilience.

What Actions Are CEOs Taking in Response to Disruption?

In response to constant disruption, CEOs are investing in AI, forming tech-driven partnerships, and continuously reviewing their portfolios. They’re not waiting for problems to arise  they are actively preparing for the future.

For example, many CEOs are adopting agile frameworks, modernising legacy systems, and exploring digital-first business models. These actions help them stay relevant in a hyper-competitive environment.

Additionally, emerging technologies allow companies to experiment faster, pivot more easily, and explore untapped markets. As Andrea Guerzoni puts it, “Confident CEOs are not just adapting to change; they are leading it.”

Conclusion: Technology Is Now a CEO’s Core Strategy

EY’s CEO Outlook Pulse Survey confirms one thing AI is no longer optional. It has become a strategic necessity. CEOs who embrace emerging tech are not only managing risk more effectively but also discovering bold ways to innovate and grow.

By using tools like digital twins and AI-powered analytics, confident CEOs are redefining leadership in the digital era. Their willingness to act decisively and strategically will shape the future of industries worldwide.

#CEOLeadership,#ArtificialIntelligence,#BusinessStrategy,#DigitalTransformation,#EYSurvey,#InnovationThroughAI,
#RiskManagement,#FutureOfWork,#TechDisruption,#DigitalTwins,