KPMG 2026 Global CEO Outlook:

The Luxembourg findings from the 12th KPMG Global CEO Outlook reveal a widening gap between CEOs’ outlook for their own businesses and for the global economy. Confidence in their organizations’ three-year growth prospects has increased from 79 percent in 2025 to 84 percent, while confidence in the global economy has fallen from 68 percent to 65 percent, the lowest it has been since 2021.

Earnings expectations have also strengthened: 68 percent anticipate annual growth of at least 2.5 percent, compared with 61 percent in 2025. The findings suggest CEOs believe they can continue to deliver growth within their businesses despite a less certain external environment, but 79 percent feel under more pressure to ensure the long-term prosperity of their organizations.

Luxembourg CEOs share the global confidence in the wider economy, with 65 percent confident in its three-year growth prospects. Confidence in their own organizations stands at 75 percent. Their earnings outlook is stronger: 75 percent expect annual growth of at least 2.5 percent, compared with 68 percent globally.

Confidence in growth is being tested by a shifting risk environment, with cybersecurity and data security now the leading threats to growth. In response, 45 percent of CEOs say they plan to increase investment in cyber and digital risk resilience over the next three years, making it the top area for investment. AI presents a similar tension between ambition and delivery. It remains a top investment priority for 79 percent of CEOs, up from 71 percent in 2025, and 66 percent believe their organization is moving at the right pace or ahead of the curve. Yet the implementation challenges they rate most highly – ethical challenges, cybersecurity, cost and data sovereignty – show how much turning that investment into value depends on governance and operational readiness.

In Luxembourg, AI integration into operating models and workflows is the most frequently cited threat to growth, selected by 35 percent of CEOs. Cybersecurity and data security and regulatory pressure follow at 30 percent each. Luxembourg CEOs are responding with strong investment in regulatory compliance and reporting, cited by 45 percent, and cyber and digital-risk resilience, cited by 40 percent.

As they pursue growth, CEOs are focused on addressing skills gaps across their workforce and training employees to work with AI, their two leading workforce concerns. Continued investment in upskilling and reskilling, providing tailored role-specific training on how AI can support people in role, alongside open communication about AI’s impact, will be critical to preparing the workforce for the future.

The workforce picture is similar in Luxembourg: 60 percent identify skills gaps as a leading challenge, while 50 percent cite both upskilling employees in AI systems and attracting and retaining talent. At the same time, 90 percent expect headcount to increase over the next three years.

Sustainability is moving deeper into strategy: 63 percent of CEOs describe their primary response over the past year as embedding it more deeply, and 70 percent weigh its costs and returns in at least some investment decisions. AI sits on both sides of that agenda. Around eight in ten CEOs believe it can support climate priorities, yet 95 percent agree that there is concern across their organization about its environmental impact more broadly.

In Luxembourg, 65 percent are embedding sustainability more deeply into core business strategy. Sixty percent consider its costs and potential returns in at least some capital decisions, while every Luxembourg respondent reports significant or moderate challenges arising from differences in sustainability regulation and expectations across markets.

Across the findings, the decisions shaping growth increasingly overlap.

AI is firmly embedded in CEOs’ investment plans. Seventy-nine percent say it remains a top priority over the next three years, up from 71 percent in 2025. Confidence is also high: 66 percent believe their organization is moving at the right pace or ahead of the curve. A further 29 percent are cautiously optimistic, while approximately 5 percent are struggling or uncertain.

Nearly three-quarters of CEOs, at 72 percent, expect to spend more than 10 percent of their budget on AI over the next year.

Commitment is particularly strong in Luxembourg, where 95 percent agree that AI is a top investment priority. Seventy-nine percent expect to allocate more than 10 percent of their budget to AI over the next 12 months, compared with 72 percent globally. Thirty percent believe they are moving at the right pace or ahead of the curve, while 60 percent are cautiously optimistic and learning as they go.

Agentic AI is also having a greater reported impact in Luxembourg: 80 percent describe its impact as transformational or significant, compared with 55 percent globally.

With investment commitment and confidence both high, the more immediate question is how to implement AI and optimize value. Ethical challenges are most frequently rated very or mostly challenging, at 57 percent. Cybersecurity follows at 52 percent, with cost at 51 percent and data-sovereignty requirements at 50 percent. Taken together, these findings suggest that trust, security and embedded controls are becoming important considerations alongside technical capability in the AI agenda.

Luxembourg CEOs identify data readiness and quality as the leading implementation challenge, cited by 70 percent. Ethical challenges and the technical capabilities and skills required to implement AI follow at 65 percent each. Data-sovereignty requirements and the ability to translate AI investment into measurable returns are each cited by 60 percent.

Governance and regulation are central to that work. Fifty-nine percent say AI and data sovereignty are prompting greater attention to internal data governance and controls. Sixty-six percent expect the pace of AI regulation to present a barrier to organizational success. For businesses operating across borders, the challenge is to scale AI while varying requirements continue to develop and differ between markets.

In Luxembourg, 70 percent say AI and data sovereignty are increasing the focus on internal data governance and control. At the same time, only 25 percent expect the pace of progress on AI regulation to be a barrier to success, while 65 percent believe AI regulation should be increased.

The wider technology environment is also becoming more consequential. More than eight in ten expect AI integration, cybercrime and technology-infrastructure costs to affect organizational prosperity over the next three years, all notably higher than in 2025.

Eighty-nine percent of CEOs expect their organization’s overall headcount to increase over the next three years, although 62 percent believe that increase will be under 5 percent. To support that growth, CEOs are focused on building the skills and capabilities their organizations will need for the future. Skills gaps are considered a significant workforce challenge, identified by 56 percent. Upskilling and training employees in AI systems follows at 52 percent, with attracting and retaining talent at 47 percent.

In Luxembourg, 90 percent expect headcount to increase, including 70 percent who expect growth of less than 5 percent. Skills gaps are the leading workforce challenge, cited by 60 percent, while upskilling employees in AI systems and attracting and retaining talent are each cited by 50 percent.

Workforce resistance sits near the bottom of AI implementation challenges, with 26 percent rating it very or mostly challenging. CEOs are responding through communication and development. Over the next 12 months, 51 percent plan to communicate openly about AI’s effect on roles; 46 percent plan reskilling and upskilling programs; and the same proportion plan tailored training on how AI can support people in their jobs.

Luxembourg CEOs are placing particular emphasis on workforce transition. Fifty-five percent plan to retrain and redeploy employees into AI-supported roles, communicate openly about AI’s effect on roles and engage external AI specialists. Over the longer term, 90 percent are focusing on retaining and retraining high-potential talent, while 80 percent are redesigning roles and team structures for human-AI collaboration and hiring talent with AI and technology capabilities.

Energy sourcing forms a related, but separate, part of CEOs’ plans. Over the next three to five years, 49 percent expect their primary approach to focus on diversifying external supply through renewable or lower-carbon energy. Thirty-seven percent expect to focus primarily on reducing demand through efficiency, while 13 percent plan to add dedicated generation, storage or backup capacity.

Luxembourg CEOs place greater emphasis on demand reduction: 50 percent expect efficiency measures to be their primary approach, compared with 37 percent globally. Thirty-five percent plan to diversify external supply through renewable or lower-carbon energy, while 15 percent plan to add dedicated generation, storage or backup capacity.

The 12th edition of the KPMG Global CEO Outlook, conducted with 1,400 CEOs between 11 August and 21 September 2026, provides insight into the mindset, strategies and planning tactics of CEOs.

This Luxembourg edition complements the global findings with insights from CEOs in Luxembourg, providing a local perspective on the opportunities, challenges and investment priorities shaping their decisions.

All respondents oversee companies with annual revenues over US$500 million, and a third of the companies surveyed have more than US$10 billion in annual revenue. The survey included CEOs from 12 key markets – Australia, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, the UK and the US – and 13 key industry sectors: asset management, automotive, banking, consumer and retail, energy, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, media and telecommunications.

NOTE: some figures may not add up to 100 percent due to rounding.