Global CEOs double down on AI & talent drive despite economic challenges

Highlights:

• 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 three years.
• 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.

Despite the headwinds, cautious optimism persists, with a significant majority of leaders focusing on investment in talent to drive a return to growth. 92 percent of CEOs say they’re planning to increase headcount over the next three years, while many remain upbeat on healthy earnings growth and remain keen on M&A. 61 percent forecast earnings increases of more than 2.5 percent in the coming three years, while 89 percent are predicting merger or acquisition activity. Their biggest potential roadblocks to achieving growth remain relatively unchanged from last year, with cybercrime and cyber insecurity (79 percent), AI workforce readiness or upskilling of workforce on AI (77%) and success integration of AI into business processes (75 percent) continuing to loom large.

Economic and geopolitical turbulence is forcing CEOs to rethink their leadership and strategy. Most (72 percent) have already adapted their growth plans, but leaders remain divided on what specific capabilities are needed to respond to today’s fast-changing and unpredictable environment, with greater agility and faster decision making (26 percent) vying with transparency in communication (24 percent) and the ability to identify prioritize risks and manage risks (23 percent) for top priority.

CEOs, navigating a shifting economic landscape, are doubling down on AI and technological innovation. Nearly three quarters (71percent) of leaders say AI is a top investment priority for 2026, with 69 percent planning to invest between 10 and 20 percent of their budgets to AI over the next 12 months.

However, an accelerated global adoption of AI is creating new challenges for the boardroom. CEOs express significant reservations regarding ethical implications (59 percent), data readiness (52 percent) and lack of regulation (50 percent). A clear consensus is emerging that robust governance frameworks will be critical for AI's sustained success.

CEOs also recognize the success of AI adoption depends on effective implementation and the prevailing sentiment is a commitment to a people-led deployment of new technology. While concerns persist that AI could lead to widespread job losses, 61 percent of CEOs say they are actively hiring new talent with AI and broader technology skills, while three quarters (70 percent) report concerns about competition for AI talent and 77 percent highlight workforce upskilling as a challenge, underscoring the intensifying race for talent.

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 increasingly confident of meeting them.

Notably, a majority (61 percent) of CEOs now express confidence in meeting their net-zero targets by 2030. This marked increase in confidence suggests a strengthening belief in the attainability of long-term climate ambitions within the corporate world.

Brian O’Neill,
Senior Manager, Global Media Relations
KPMG International 
T: +44 7823 668 689 
E: Brian.ONeill@kpmg.co.uk

The 11th edition of the KPMG CEO Outlook, conducted with 1350 CEOs between 5 August 2025 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, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).

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

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