London, 7 October 2025 – Confidence among global CEOs regarding the world economy has dipped to its lowest level in five years, according to the KPMG 2025 Global CEO Outlook. Despite this, business leaders are channeling resources into artificial intelligence, workforce development, and risk management to sustain long-term growth. n nThe annual survey, which gathered insights from over 1,300 chief executives, highlights a cautious sentiment shaped by ongoing geopolitical instability and macroeconomic volatility. While 68 percent of respondents express belief in the current global economic path—down from 72 percent the previous year—there remains a strong focus on strategic investments. n nA notable 92 percent of CEOs plan to expand their workforce in the next 12 months, reflecting optimism about future earnings and expansion opportunities. Around 40 percent anticipate profit growth exceeding 2.5 percent, and 89 percent foresee engagement in mergers or acquisitions. Persistent challenges include cyber threats (79 percent), preparing employees for AI integration (77 percent), and effectively embedding AI into operations (75 percent). n nIn response to shifting conditions, 72 percent of executives have revised their growth strategies. However, opinions differ on the most critical leadership traits: agility and faster decision-making (26 percent), transparent communication (24 percent), and risk identification and mitigation (23 percent) are top contenders. n nInvestment in AI remains a central pillar, with 71 percent of CEOs identifying it as a leading priority for 2026. About 69 percent intend to allocate between 10 and 20 percent of their budgets to AI initiatives in the coming year. Yet, rapid adoption brings concerns—59 percent cite ethical issues, 52 percent question data readiness, and 50 percent point to insufficient regulatory frameworks. There is growing agreement that strong governance will be essential for responsible AI deployment. n nLeaders emphasize that successful technology integration hinges on human-centered approaches. Although fears of job displacement persist, 61 percent are actively recruiting professionals with AI and technical expertise. Meanwhile, 70 percent worry about competition for skilled individuals, and 77 percent identify employee upskilling as a major hurdle, underscoring the intensifying battle for qualified personnel. n nOn sustainability, corporate commitment remains robust despite regional differences in ESG perspectives. A significant 61 percent of CEOs now believe they will achieve net-zero emissions by 2030—a sign of increasing confidence in long-term environmental goals. n nThis 11th edition of the KPMG CEO Outlook, conducted between 5 August and 10 September 2025 with 1,350 CEOs, offers deep insight into executive thinking across key markets including Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK, and the US. All participants lead firms with annual revenues above USD 500 million, with one-third surpassing USD 10 billion. Industries represented span asset management, automotive, banking, consumer goods, energy, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications. n nNote: Percentages may not sum to 100 due to rounding. n
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Global CEOs double down on AI & talent drive despite economic challenges
London, 7 October 2025 – CEO confidence in the global economy has hit a five-year low, according to the KPMG 2025 Global CEO Outlook, as corporate leaders focus strategic investments in AI, talent and risk resilience to sustain and fuel future growth. n nThe annual survey of more than 1,300 global leaders reveals a cautious outlook among CEOs, driven by persistent geopolitical tensions and economic uncertainty. n nThe challenging landscape is prompting a shift in leadership approach, with many adapting their growth strategies to navigate today’s complex world. 68 percent of CEOs are confident in the current trajectory of the world economy – down from 72 percent last year and continuing a long-term trend of declining confidence. n nDespite 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 12 months, while many remain upbeat on healthy earnings growth and remain keen on M&A. 40 percent forecast earnings increases of more than 2.5 percent in the coming twelve months, 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. n nEconomic 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. n nCEOs, 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. n nHowever, 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. n nCEOs 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. n nWhile 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. n nNotably, 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. n nThe 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. n nAll 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). n nNOTE: some figures may not add up to 100 percent due to rounding. n nKPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. n nKPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.