The world continues to face geopolitical tensions and economic uncertainty - but KPMG’s 11th CEO Outlook shows that leaders are positive, if cautious, about the future.
CEO confidence in the global economy has hit a five-year low, according to the KPMG 2025 Global CEO Outlook, as corporate leaders focus strategic investments in AI, talent and risk resilience to sustain and fuel future growth.
The annual survey of more than 1,300 global leaders reveals a cautious outlook among CEOs, driven by persistent geopolitical tensions and economic uncertainty.
The challenging landscape is prompting a shift in leadership approach, with many adapting their growth strategies to navigate today’s complex world. 68 percent of CEOs are confident in the current trajectory of the world economy – down from 72 percent last year and continuing a long-term trend of declining confidence.
Ultimately, the leaders who can embrace market volatility and focus investments in the right strategic areas for their organization will be the ones best placed to unlock new opportunities and build sustainable, long-term growth. -Bill Thomas, Global Chairman and CEO. KPMG International.
- AI remains a top investment priority, with 69 percent of CEOs planning to allocate 10–20 percent of their budgets to AI over the next 12 months.
- However, CEO confidence in the global economy has dropped to 68 percent – its lowest level since 2021.
- Despite ongoing economic pressures, 92 percent of leaders are planning to increase headcount over the next 12 months.
- 70 percent of CEOs are concerned about competition for AI talent, and 77 percent highlighting workforce upskilling as a challenge.
- 61 percent of CEOs now express confidence that they can meet their net-zero goals by 2030, a significant increase from 51 percent in 2024.
Economic Outlook
Technology and AI
Technology and AI
Engaging employees in this transition is crucial, but CEOs acknowledge that this will require focus and support. Sixty-three percent are concerned about the possible impact of AI on company culture. Additionally, a third (33 percent) recognize that some employees’ unwillingness to adopt new technologies and adapt to changes poses a challenge.
However, AI is not the only concern for business leaders regarding their workforce. Labor market shifts and demographic changes - particularly an ageing workforce - are seen by 88 percent of leaders as having a moderate to high impact on recruitment, retention and culture. Nearly a third (30 percent) of CEOs highlight growing generational gaps on key future skills, while a quarter (24 percent) are worried about the number of employees retiring, coupled with a lack of skilled workers to replace them. Managing the multi-generational workplace has become a new strategic item on the boardroom agenda.
ESG
While attitudes toward ESG vary across regions, the KPMG 2025 CEO Outlook indicates that most corporate leaders remain strongly committed to their sustainability goals and are increasingly confident in meeting them.
In particular, 61 percent of CEOs say they are on track to hit their 2030 net zero targets, compared to just 51 percent a year ago. This may be due to businesses reviewing and reassessing their interim climate goals to be more realistic and aligned with core business strategy.
The biggest hurdles to overcome in terms of achieving net zero or similar climate ambitions are seen to be the complexity of decarbonizing supply chains (cited by 25 percent of CEOs) and a lack of skills and expertise to successfully implement solutions (21 percent). Cost is seen as a lesser issue — cited by 11 percent of leaders, broadly the same as a year ago.
Increasingly, CEOs are recognizing the potential of AI to support their decarbonization and sustainability efforts. The top use cases include:
- Improving sustainability—related data quality and reporting (79 percent)
- Identifying opportunities for resource efficiency (79 percent)
- Reducing emissions and improving energy efficiency (78 percent)
Another priority is ESG reporting with half (51 percent) of corporate leaders saying they are prioritizing compliance and reporting standards to meet evolving investor and regulatory demands.
Two-thirds (65 percent) of CEOs say that they have fully embedded sustainability into their business and believe it is critical to their long-term success. However, there is still work to be done when it comes to incorporating sustainability considerations into capital expenditure decisions, with only 29 percent saying that they are comprehensively integrated.
Methodology
The 11th edition of the KPMG CEO Outlook, conducted with 1,350 CEOs between 5 August and 10 September 2025, provides unique insight into the mindset, strategies and planning tactics of CEOs.
All respondents oversee companies with annual revenues over US$500M and a third of the companies surveyed have more than US$10B in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 12 key industry sectors (asset management, automotive, banking, consumer and retail, energy, infrastructure, healthcare, insurance, life sciences, manufacturing, technology, and telecommunications).
NOTE: some figures may not add up to 100 percent due to rounding.