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While acknowledging these challenges, about 69% of CEOs surveyed are planning to allocate between 10% and 20% of their budgets to AI within the next year.
CEO confidence in the world economy has reached a five-year low, according to the KPMG 2025 Global CEO Outlook, as organisation leaders steer their strategies towards artificial intelligence (AI), talent, and risk resilience to navigate a rapidly evolving business environment.
The survey, involving more than 1,300 CEOs worldwide, found that only 68% of leaders are confident in the current economic trajectory, a decrease from 72% last year. This reflects a cautious sentiment amid persistent geopolitical and economic headwinds.
Navigating uncertainty with a focus on people and performance
While optimism remains tempered, many CEOs are still pressing ahead with growth plans. A strong majority (92%) plan to increase headcount in the coming year, signalling continued trust in people as a driver of recovery. At the same time, 40% expect earnings to rise by more than 2.5%, while 89% anticipate merger and acquisition activity.
However, challenges remain, with cybercrime and cyber insecurity (79%), AI workforce readiness (77%), and the successful integration of AI (75%) identified as the top barriers to growth.
To manage ongoing turbulence, most leaders (72%) have already adapted their growth strategies. Yet, they remain divided on which capabilities are most critical for navigating uncertainty – be it agility and faster decision-making (26%), transparent communication (24%), or stronger risk management (23%).
CEOs lean into human-centric AI strategies
As AI continues to reshape industries, CEOs are investing heavily in its potential. Nearly three in four (71%) view AI as a top investment priority for 2026, with 69% planning to allocate between 10% and 20% of their budgets to AI within the next year.
However, rapid AI adoption is not without concern. CEOs cited ethical implications (59%), data readiness (52%), and a lack of regulation (50%) as major challenges, highlighting the growing call for robust governance frameworks.
Importantly, many leaders are taking a people-first approach. While fears of AI-led job losses persist, 61% of CEOs report hiring talent with AI and technology skills, and 77% highlight upskilling as a key challenge. This reflects an industry-wide recognition that technology success depends on human capability and responsible deployment.
Confidence grows in climate commitments
Beyond technology, sustainability remains high on the corporate agenda. While attitudes toward ESG differ across regions, the KPMG 2025 CEO Outlook shows that most corporate leaders remain firmly committed to their sustainability goals and are increasingly confident about achieving them. A majority (61%) of CEOs now say they are on track to meet their net-zero targets by 2030, reflecting a stronger belief in the attainability of long-term climate ambitions and a deepening focus on sustainable growth.
Bill Thomas, Global Chairman and CEO of KPMG International, said: "It’s clear from our findings that CEOs are finding opportunities from disruption by investing boldly in technology, innovation and talent. With what we are seeing, there’s a careful balance required between innovation and responsibility."
Thomas added that CEO responses on AI reflect this balance, as many leaders recognise the importance of embracing innovation while addressing concerns around ethics, regulation, upskilling, and access to talent.
In that vein, those who can navigate market volatility and focus investments into the right strategic areas will be best positioned to unlock new opportunities and drive sustainable, long-term growth.
You may find the insights summary here.
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