Leaders see tech and people as twin pillars of growth in volatile times
In the face of rising geopolitics and macro uncertainty, global business leaders are signalling confidence in their own organisations even as optimism about the broader economy wanes.
KPMG’s latest Global CEO Outlook, released today (10/7) reveals that 79% of CEOs expect their firms to outperform, taking a bold stance at a time when faith in the global outlook is at a five-year low. Leaders are placing major stakes on AI deployment and talent development to sustain growth and resilience.
The survey reveals that 71% of respondents regard artificial intelligence as a top investment area, up from 64% a year ago with 67% believing they’ll see returns within one to three years, marking a more aggressive time horizon than in earlier cycles. Meanwhile, 69% are allocating 10-20% of their budgets to AI initiatives.
“CEOs are investing in AI with greater confidence — not just because of its promise, but because of the measurable value they are seeing and the rapid emergence of agents, making expected returns more accessible and scalable,” the report states.
CEOs view skilled personnel as essential to unlocking AI’s promise with 77% saying that workforce readiness and upskilling will influence their company’s prospects over the next three years. A similar share is prioritising the retention and development of high-potential talent.
However, the scarcity of AI-savvy professionals is a common concern with 70% stating that competition for this talent could limit their success.
CEOs identify economic turbulence as the primary threat to growth. But that’s only one part of the equation along with cyber risk, regulatory headwinds, and ethical AI use as key challenges. Other top leadership traits being emphasized include rapid decision-making, risk prioritisation, and transparent communications.
In the ESG arena, 61% of CEOs believe they are on track to meet 2030 net zero targets, which is a notable jump from 51% a year ago. The biggest obstacles are supply chain decarbonisation and talent gaps, although many see AI as a tool to reinforce sustainability goals, especially around emissions measurement and resource efficiency.
With 89% of CEOs expecting M&A activity to have “moderate to significant impact” in coming years, deal flow could accelerate, offering avenues for advisory engagement.
“Ultimately, the leaders who can embrace market volatility and focus investments in the right strategic areas for their organization will be the ones best placed to unlock new opportunities and build sustainable, long-term growth,” says Bill Thomas, global chair and CEO at KPMG International.
