• 69% of CEOs plan to allocate up to 20% of their budgets to AI in the next year.
• 92% expect to expand headcount despite mounting global economic uncertainty.
• CEO confidence in meeting net-zero goals by 2030 has risen from 51% to 61%.
CEOs Reassess Growth Amid Mounting Economic Uncertainty
Global CEOs are tempering optimism about the world economy while doubling down on investment in artificial intelligence, workforce expansion, and sustainability, according to KPMG’s 2025 Global CEO Outlook released on October 7.
The survey of over 1,300 chief executives shows confidence in the global economy slipping to 68%, the lowest since 2021. Leaders cite persistent geopolitical instability, sluggish growth, and market volatility as key factors weighing on sentiment. Yet, rather than scaling back, most CEOs are recalibrating their growth strategies to focus on innovation and resilience.
Seventy-two percent have already adapted their corporate strategies in response to macroeconomic turbulence, prioritizing risk management, agility, and transparent communication as the most essential leadership qualities for navigating uncertainty.
AI and Technology Investments Accelerate
Artificial intelligence remains the single largest strategic focus area heading into 2026. Nearly three-quarters (71%) of CEOs rank AI as their top investment priority, and 69% plan to devote between 10% and 20% of corporate budgets to AI projects over the next 12 months.
However, the rapid pace of AI integration brings new boardroom concerns. CEOs cite ethical risks (59%), data readiness (52%), and weak regulation (50%) as the leading governance challenges. KPMG notes that a growing number of executives are calling for stronger frameworks to ensure responsible deployment of AI technologies.
Rather than viewing AI as a workforce replacement, leaders appear to be pursuing a “human-first” integration strategy. Sixty-one percent of CEOs are actively hiring for AI and broader technology roles, while 70% are worried about competition for digital talent. Workforce upskilling remains a core challenge, with 77% highlighting the urgent need to prepare employees for AI-driven operations.
Talent and M&A Drive Confidence in Long-Term Growth
Despite deteriorating global confidence, CEOs show resilience in their operational outlook. A strong 92% expect to increase headcount in 2025, suggesting continued commitment to innovation-led recovery.
Earnings expectations are also relatively stable, with 40% forecasting profit growth above 2.5% over the next year. Nearly nine in ten CEOs anticipate pursuing mergers or acquisitions, reflecting an appetite to consolidate capabilities and capture strategic advantages in emerging technologies and supply chains.
Cybersecurity remains a top concern, with 79% identifying it as the primary threat to growth. This aligns with the shift toward digital transformation and the escalating exposure to cybercrime as companies adopt advanced technologies at speed.
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ESG and Climate Confidence Strengthen
While sentiment toward ESG varies by region, the report finds growing conviction in corporate sustainability trajectories. Sixty-one percent of CEOs now express confidence that their organizations can meet net-zero goals by 2030, up from 51% in 2024.
This increase suggests not only greater investment in emissions reduction technologies but also stronger governance integration of climate targets. ESG priorities are also evolving beyond carbon reduction, with 83% of CEOs recognizing the need to balance localized community engagement with centralized strategies to address political, social, and climate-related challenges.
KPMG International’s Global Head of ESG, John McCalla-Leacy, said the rebound in climate confidence is a “positive signal” for collective decarbonization. “Despite challenging macro conditions, leaders remain strongly committed to ESG issues,” he said, adding that the next phase of corporate climate action will likely involve reconciling local realities with global commitments.
Balancing Innovation, Governance, and Responsibility
KPMG Global Chairman and CEO Bill Thomas said CEOs are “finding opportunities in disruption” by investing in technology, innovation, and talent. He noted that balancing innovation with responsibility remains a defining challenge: “Leaders recognize the need to embrace technological transformation while managing ethical, regulatory, and workforce concerns.”
The report suggests that CEOs capable of turning volatility into strategic advantage—by embedding AI, sustainability, and talent development into core business models—will be best positioned for long-term, inclusive growth.
As confidence in the global economy wanes, the 2025 findings reveal a defining trend: resilience is shifting from passive risk management to active reinvention. For global executives, the next phase of growth will be built not on optimism, but on the capacity to align technological and human capital investment with the demands of a volatile, decarbonizing world.
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