Directors Quarterly: Q4 2025

Despite ongoing economic uncertainty, optimism in AI is buoying CEO confidence: 74% of US CEOs say AI is a top investment priority, and they are accelerating their expectations for return on AI investments, according to the KPMG 2025 US CEO Outlook.

In this edition, we provide insights and observations on the artificial intelligence (AI) landscape—where many companies are on their AI journeys and areas for board focus as companies deploy AI and AI agents.

Amid the unprecedented turbulence, uncertainty, and speed of change that have defined 2025, we offer considerations for directors to keep in mind as boards look to help ensure the company’s culture can stand up to pressure.

We also share findings from our survey of nearly 275 private company directors, including their views on the strategic planning process, scenario planning and risk analysis, and GenAI, and where they believe their boards can add the most value.

Our financial reporting and auditing update covers the ongoing effects of US tariffs, key corporate provisions of H.R. 1, “One Big Beautiful Bill Act,” leadership changes at the SEC and PCAOB, the SEC’s regulatory agenda, the latest on sustainability reporting proposals, and other developments that audit committees should have on their radars.