The survey found that sixty-nine per cent of CEOs plan to allocate 10 to 20 per cent of their budgets to AI over the next 12 months.Β 

CEO confidence in the global economy has hit a five-year low, according to the KPMG 2025 Global CEO Outlook. Corporate leaders are focusing investments on artificial intelligence, 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, caused by persistent geopolitical tensions and economic uncertainty.

Such conditions are prompting a shift in leadership approach, with many company bosses adapting growth strategies. Sixty-eight per cent of CEOs are confident in the direction of the world economy β€“ down from 72 per cent last year and continuing a long-term trend of declining confidence.

Despite the headwinds, the report shows that cautious optimism persists, with a majority of leaders focusing on investment in talent to drive a return to growth. Ninety-two per cent of CEOs said they are planning to increase headcount over the next three years, while many remain upbeat on healthy earnings growth and remain keen on M&A. Sixty-one per cent forecast earnings increases of more than 2.5 per cent in the coming three years, while 89 per cent are predicting merger or acquisition activity.

Such a report, based as it is on the views of business leaders, gives wealth managers and private bankers a glimpse into what matters for clients.

Roadblocks
Their biggest potential roadblocks to achieving growth remain relatively unchanged from last year, with cybercrime and cyber insecurity (79 per cent), AI workforce readiness or upskilling of workforce on AI (77 per cent), and successful integration of AI into business processes (75 per cent) continuing to loom large, the report continues.

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

On China, the report shows that 88 per cent of Chinese CEOs express confidence in China’s economic outlook β€“ an increase of 17 per cent from last year, marking the highest level in recent years. Twenty-six per cent of Chinese CEOs have identified advancing business digitalisation and connectivity as their top strategic priority for the next three years, exceeding the global average of 18 per cent. The value of artificial intelligence applications is beginning to be realised. Eighty-six per cent of Chinese CEOs expect to see returns on their AI investments within three years, up from 18 per cent last year. Notably, one in five anticipate achieving returns in less than a year. Fifty-five per cent  of China CEOs are prioritising compliance and reporting standards to meet investor and regulatory demands, compared with 51 per cent globally, the report shows.

AI marches on
CEOs, managing a shifting economic landscape, are doubling down on AI and technological innovation. Nearly three quarters of leaders say AI is a top investment priority for 2026, with 69 per cent planning to invest between 10 and 20 per cent 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 per cent), data readiness (52 per cent) and lack of regulation (50 per cent). A clear consensus is emerging that robust governance frameworks will be critical for AI's sustained success.

CEOs also recognise that 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 per cent of CEOs say they are actively hiring new talent with AI and broader technology skills, while three quarters (70 per cent) report concerns about competition for AI talent and 77 per cent highlight workforce upskilling as a challenge, underscoring the intensifying race for talent.

Climate confidence on the rise
While attitudes towards ESG vary across regions, the KPMG 2025 CEO Outlook indicates that most corporate leaders remain committed to their sustainability goals and increasingly confident of meeting them.

Notably, a majority (61 per cent) of CEOs now show confidence in meeting their net-zero targets by 2030. This marked increase in confidence suggests a strengthening belief that long-term climate ambitions are attainable within the corporate world.

KPMG said the findings show that CEOs are finding opportunities from disruption by investing boldly in technology, innovation and talent. That said, there is a balance required between innovation and responsibility. CEO responses on AI exemplify this, with leaders recognising the need to embrace innovation while managing concerns over ethics, regulation, upskilling and access to talent.