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Tuesday, 17 December 2024 - 09:35

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Dutch CEOs increasingly expect AI to replace jobs

Nearly one in five top executives at large Dutch companies believes artificial intelligence (AI) will almost certainly replace jobs in the future, according to ING’s annual CEO survey. This marks a significant jump from last year, when only 6 percent of executives held that view.

The survey, conducted by research firm MetrixLab on behalf of ING, polled 263 executives from Dutch companies with annual revenues exceeding 250 million euros. Of the respondents, 54 percent said AI “maybe” would replace jobs, up from 39 percent last year. Positions in research and development, customer service, and IT departments are expected to be most affected.

Despite concerns over job displacement, AI is now the top innovation priority among Dutch CEOs, rising from third place last year. "The growing concerns over AI reflect its disruptive impact, but at the same time, it offers opportunities for accelerated innovation," Mark Milders, director of Wholesale Banking at ING Netherlands, said.

The survey also showed that 90 percent of executives are optimistic about their company’s outlook for 2025, up from 85 percent last year. This optimism extends to the economic policies of the Dutch government, with 76 percent expecting a positive impact on their businesses in the coming years. Additionally, 78 percent believe the government’s policies will improve the Dutch business climate.

The CEOs’ positive sentiment is driven by multiple factors, including expectations surrounding the potential re-election of former U.S. President Donald Trump. ING’s survey revealed that 78 percent of respondents are optimistic about Trump’s impact on their companies, while 74 percent said his presidency would benefit the Netherlands overall.

“Executives anticipate greater economic stability under Trump and see opportunities for Dutch businesses due to clearer international regulations,” Milders said. “However, their biggest concern is that Trump’s policies may trigger trade wars, rising inflation, higher interest rates, and a stronger dollar.”

While optimism remains high, CEOs continue to grapple with pressing concerns. High energy prices, inflation, and retaining talent are top worries, alongside the growing impact of AI.

The report highlighted that 83 percent of executives plan to accelerate efforts toward sustainability. Developing sustainable products and services remains the primary approach to achieving this goal. However, more than half of respondents said creating a clear roadmap for the transition to sustainable operations remains a significant challenge.

“While executives want to advance sustainability, translating those ambitions into actionable plans remains difficult for more than half of companies,” Milders said. “This challenge also impacts their ability to secure financing, as climate risk increasingly influences credit conditions.”

Nearly half (49 percent) of executives expect climate-related risks to make financing more difficult or costly. Banks and financial institutions are adopting stricter environmental, social, and governance (ESG) criteria, which 84 percent of executives support. However, 29 percent said climate risks are already affecting their financing costs.

Milders explained, “We aim to support companies through their transitions by offering tailored financing solutions. But if businesses fail to show sufficient progress, financing risks will rise, making investments more expensive in the long run.”

Interestingly, concerns over geopolitical tensions and security have dropped off the priority list this year. Instead, financial market developments, monetary policy, and regulatory changes now dominate CEOs’ worries. Those who remain concerned about geopolitics cite risks such as rising energy prices, inflation, and interest rates.

When asked about priorities for the Dutch government, executives named improving the country’s business environment as their top concern (15 percent). Other key priorities include maintaining competitiveness (11 percent) and improving infrastructure for employees (11 percent). The energy transition remains a concern for 10 percent of respondents, while issues such as migration, climate change, and housing shortages ranked lower.

The survey was conducted in November 2024 among CEOs, CFOs, CTOs, and other top executives. Companies surveyed reported annual revenues of at least 250 million euros, with 34 percent listed on the stock market.

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