Global CEOs double down on AI and talent amid declining economic confidence

CEO confidence in the global economy has fallen to a five-year low, according to the KPMG 2025 Global CEO Outlook. Yet, despite the caution, many leaders are pushing ahead with bold investments in AI, workforce development, and risk resilience to secure long-term growth.

The annual survey of more than 1,300 global business leaders revealed that only 68% of CEOs are confident in the current trajectory of the global economy, down from 72% the previous year, marking a steady downward trend. Persistent geopolitical tensions, inflationary pressures, and economic uncertainty have prompted many to rethink their leadership strategies and adapt their organisations for a more complex world.

Still, optimism has not vanished. An overwhelming 92% of CEOs plan to increase their headcount over the next 12 months, reflecting a strong belief that talent remains the driving force behind future growth. Many are also anticipating steady financial performance, with 40% expecting earnings to rise by more than 2.5%, and nearly nine in 10 (89%) predicting merger and acquisition activity in the year ahead.

However, CEOs remain vigilant about the risks that could derail progress. Cybercrime (79%), workforce readiness for AI (77%), and the successful integration of AI into business processes (75%) remain the top boardroom concerns.

The report also showed that 72% of leaders have already adjusted their growth strategies to contend with economic turbulence. Yet there is little consensus on which capabilities will best equip organisations for resilience. For some, agility and rapid decision-making (26%) top the list, while others emphasise transparent communication (24%) or stronger risk management (23%).

As CEOs chart their next phase of growth, AI has emerged as a defining priority. Nearly three-quarters (71%) of respondents identify AI as a top investment focus for 2026, with most planning to allocate 10-20% of their budgets to AI initiatives over the next year.

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Yet enthusiasm for AI is tempered by significant concern. A majority of CEOs cite ethical implications (59%), data readiness (52%), and lack of regulation (50%) as barriers to responsible adoption.

The competition for AI talent is intensifying. While 61% of CEOs report hiring new employees with AI and digital expertise, 70% worry about the escalating competition for skilled talent. Meanwhile, 77% view workforce upskilling as a critical challenge, highlighting a need for organisations to invest in capability building and continuous learning.

Amid uncertainty, sustainability remains a priority on the corporate agenda. The survey found that 61% of CEOs are confident about meeting their net-zero targets by 2030, a notable rise from previous years.

Bill Thomas, Global Chairman and CEO of KPMG International, said, “With what we are seeing, there’s a careful 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, regulations, upskilling and access to talent.”

“Ultimately, the leaders who can embrace market volatility and focus investments in the right strategic areas for their organisation will be the ones best placed to unlock new opportunities and build sustainable, long-term growth.