AI Use and Technology Investment Are Top Private Company Leadership Priorities: Deloitte Private Survey

NEW YORK, July 30, 2024 - A Deloitte Private survey of C-suite executives found that increasing AI use across the organization (43%) and investments in technology (37%) are the top two private company business priorities over the next 12 months. In the report, "Private Company Outlook: Governance," survey respondents also indicate that that emerging technology/AI is the most important competency (43%) to strengthen the organization's board.

Key findings:

• Training/educating board members about AI is as important as reskilling the workforce. Private company C-suite respondents said determining AI use within the organization (50%), training and upskilling the workforce on the use of AI (49%) and training/education for board members (49%) on AI were high or very high priorities. Less than one-third (31%) cited recruiting board members with advanced AI or emerging tech experience as a high or very high priority.
• Private company C-suite executives perceive climate as a greater risk than market competition.Two-thirds of respondents (66%) indicate that climate is a high or very high macro risk to their organization, ahead of market competition (52%). While half (50%) believe their board is spending an adequate amount of time on these two issues, more respondents feel their board needs to spend additional time on issues like inflation (64%) and regulatory changes (61%).
• Reputational and cyber risks are chief enterprise-level concerns among private company leaders. More than half of respondents consider reputational risk (54%) and cyber threats (51%) a high or very high enterprise risk. While roughly half (47% and 48%, respectively) feel the organization's board is spending an adequate time on these topics, 62% said the board should spend more time on strategic risk.
• Talent frequents the quarterly agenda, but private company leaders surveyed say boards should spend more time on it. Talent (51%), digital transformation (46%) and emerging tech/AI (44%) most often appear on the quarterly board meeting agenda. However, 61% of respondents believe their board should spend more time on hiring/retaining talent.

"Private company boards, like the organizations they oversee, have a growing list of priorities and demands on their time, said Wolfe Tone, vice chair and U.S. Deloitte Private leader. "Traditional pressures like strategic, reputational and competitive risks persist, while organizations seek more attention on areas like talent. Expanding the experience and knowledge of board members is one step, but dialogue about board capacity and priorities can improve governance on external and enterprise risks today while preparing organizations for transformational changes in the future."

About the survey
The survey of 100 private company leaders was conducted online by an independent research company between June 13 and 18, 2024. Respondents represented C-level, president, board member, partner/owner roles at private companies in the US with annual revenues of US$100 million to more than US$1 billion+.

For more information about this survey, please visit: Private Company Outlook.

Deloitte Private serves the unique needs of private companies and their stakeholders by leveraging the full depth of Deloitte's technical experience and industry capabilities to serve private enterprises, family-owned businesses, private equity portfolio companies and emerging growth companies. Visit us at https://www2.deloitte.com/us/private or follow us on LinkedIn.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500^® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide connect for impact at www.deloitte.com.