Assessing Market Trends, Customer Expectations, and the Competitive Landscape Among Top Challenges for Private Company Management, say Board Directors

NEW YORK, October 1, 2025 – Most directors on private company boards say they are less than satisfied with their board’s understanding of the company’s plans and use of GenAI, a critical component of the board's role in oversight of strategy and helping to drive technological advancement, according to the KPMG Board Leadership Center's new 2025 Private Company Board Survey Insights.

The survey, fielded from March to June 2025, gathered views from nearly 275 private company directors across various sectors, sizes, and ownership. It focused on strategic planning, scenario planning, and other board priorities in the current business environment.

“Directors who can constructively challenge strategic assumptions and provide fresh perspectives—on markets, competitors, customers, and trends—greatly enhance the strategic planning process,” said Claudia Allen, Senior Advisor, KPMG Board Leadership Center, KPMG US.

Independent Directors are Most Concerned with Scenario Planning

Directors indicate that the top two challenges for management in strategic planning are the difficulty in assessing market trends, customer expectations, and the competitive landscape (49%), and the scenario planning and risk analysis process (48%).

Assessing market trends, customer expectations, and the competitive landscape is particularly challenging at private equity-owned companies, with nearly 60% of directors at those companies citing it as the top challenge in strategic planning.

Nearly 60% of private company directors who work for investment firms say that the board adds value by working with management to identify potential risks and opportunities, and 42% of executives on the board see value in the board’s ability to monitor strategic execution.

Directors are looking for improvement in scenario planning. More than half (55%) say that current risk identification and quantification methods need improvement. Two-thirds (65%) say that providing regular input on management’s scenario planning updates and results is a key area where the board adds value.

Independent directors are most concerned with management’s scenario planning and risk analysis, especially management’s ability to develop scenarios, identify potential impact, and determine how to pivot. Moreover, 60% of independent directors surveyed say that scenario planning needs improvement in staffing and resources.

Private Boards are Not Satisfied with their Understanding of Generative AI

Strategic planning, including scenario planning and risk analysis, is increasingly centered on the role of technology, including generative AI (GenAI), and boards have work to do to understand the impact.

Only 24% of private company directors surveyed are satisfied or very satisfied that their board understands the risks posed by the use of GenAI. Less than one-third (30%) percent are satisfied or very satisfied that their boards understand of the company’s use of/plans to use GenAI. And only 27% are satisfied or very satisfied that their board understands the potential impact of Gen AI on the company’s business model and strategy.

Boards Have a Role to Play in Driving Trust in AI

Governance over the effective, ethical, and responsible deployment of GenAI is critical, yet more than half (53%) of directors surveyed are somewhat satisfied or not satisfied that their company is implementing the right governance approaches around this technology.

The survey underscores the board's critical role in enhancing strategic oversight and driving technological advancements. By focusing on these areas, boards can help to navigate today’s complex business landscape and position their companies for long-term success.

For more information on the survey and its findings, click here.

Leadership Quotes

“This year’s survey results make one thing clear: directors want sharper market insight, stronger scenario planning, and responsible GenAI governance. These priorities stand out as the critical areas where boards need to elevate their oversight. We help company’s address them through KPMG Private—bringing outside‑in market signals, iterative and quantified scenarios, and pragmatic guardrails for emerging tech—so oversight sharpens and strategy translates to execution across PE‑owned, founder‑led, and family enterprises.” – Melissa Taylor, Vice Chair, Clients & Markets

“Uncertainty is the new normal, and asset managers are making it their edge—turning portfolio company scenario planning into strategic muscle, aligning strategy, tech investment, and GenAI governance to drive performance and position their firms for long-term success.” – Yesenia Scheker-Izquierdo, U.S. Sector Leader, Asset Management

“In an era of accelerating disruption and evolving tax complexity, private enterprises and family offices face unique challenges—from navigating shifting global tax regulations to managing multi-jurisdictional compliance and succession planning. KPMG Digital Gateway—our comprehensive technology platform powered by GenAI—integrates and analyzes entire data ecosystems to address these specific tax issues. Our KPMG Tax Private Enterprise team leverages advanced modeling and scenario planning, coupled with strategic insights, to help clients manage tax risk, optimize structures, and identify opportunities for tax efficiency. By transforming tax from a compliance obligation into a strategic driver, we empower private enterprises and family offices to align their tax strategy with long-term growth and legacy objectives.” – Tracey Spivey, Partner, Tax

"The KPMG 2025 Private Company Board Survey reveals that nearly 60% of directors on private equity-owned company boards find that assessing market trends, customer expectations, and the competitive landscape to be the most challenging aspect of strategic planning for management, making this report essential reading for private equity professionals who need to support and enhance their portfolio companies to drive long-term value and improve governance." – Don Zambarano, Private Equity Sector Leader

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