KPMG’s Global CEO Outlook: The Key To Resilience And Growth

While CEOs are continuing to face the volatile business environment, confidence in the global economy has fallen to pandemic levels according to the KPMG 2025 Global CEO Outlook.

Despite this, the report shows that 79% of CEOs are optimistic about their own firm’s prospects and 71% are using a combination of investment in AI and maintaining high-potential talent to support future growth.

KPMG’s CEO Outlook collects the views of 1,350 CEOs between 5 August and 10 September 2025, providing insight into the “mindset, strategies and planning tactics” of C-suite leaders.

Almost three-quarters of those in the study have adjusted their growth strategies to tackle these ongoing challenges and uncertainties.

The majority anticipate rising revenues and an increased workforce within the next three years, alongside expecting to see a return on investments made in AI adoption, says KPMG.

Bill Thomas, KPMG CEO, says: “It’s clear from our findings that CEOs are finding opportunities from disruption by investing boldly in technology, innovation and talent.”

He added that there is a “careful balance” needed between innovation and responsibility and leaders are “recognising the need to embrace innovation while managing concerns over ethics, regulation, upskilling and access to talent”.

Adapting growth strategies

Economic uncertainty is seen as the biggest threat to stability, and KPMG says building resilience through technology, talent and ESG remains key. These areas bring challenges and opportunities:

1. Economic outlook amongst economic uncertainty

Despite global economic confidence falling to a five-year low at 68%, CEOs remain optimistic about their organisations - with 61% forecasting earnings growth of at least 2.5% over the next three years.

KPMG says that to address structural risks and stay competitive, 92% plan to increase headcount, 69% are allocating up to 20% of their budgets to AI and 89% expect moderate to significant M&A activity. 

But key pressures influencing investment include:

• Cybersecurity (39%)
• Regulatory compliance (36%)
• AI integration (34%)

Over half believe that increasing leadership complexity adds pressure, and 80% of leaders say they feel heightened responsibility for long-term success amid a persistently disruptive business environment.

2. Technology and AI - balancing risk

CEOs are accelerating AI investment, with 71% naming it a top priority - an increase of 7% from last year - and 69% allocating 10–20% of their budgets to it. 

Confidence in ROI is rising, with 67% expecting returns within one to three years. 

While 74% believe their organisations can keep pace with AI’s rapid evolution, challenges remain: 59% cite ethical concerns, 52% data readiness and 50% lack of regulation. 

But, 84% support employee experimentation, and 89% believe boards are ready to guide AI-driven growth.

Steve Chase, Global Head of AI and Digital Innovation at KPMG International, said: “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.”

3. Talent and AI skills

CEOs are prioritising workforce transformation to harness AI, with 77% saying AI readiness and upskilling will impact long-term success. 

However, 70% see competition for AI talent as a key constraint. In response, 79% are rethinking employee training, 71% focus on retaining top talent, and 61% are hiring for AI skills. 

Leaders also face challenges like cultural impact (63%), tech resistance (33%), and demographic shifts, including an aging workforce and skill gaps.

Sandy Torchia, Global Co-Head of People at KPMG, says that AI as AI is becoming an enormous area of focus, the demand for AI talent will only intensify.

She added: “This is where a rounded and people-centred employee value proposition continues to be key - because it’s the human factors that will attract talent.”

4. ESG - confidence in climate targets

CEO confidence in achieving climate targets is rising, with 61% on track for 2030 net-zero goals, up from 51% last year. 

Challenges remain, with CEOs naming decarbonising supply chains (25%) and lack of expertise (21%) as key issues they face. 

AI is seen as a key enabler, especially in data reporting (79%) and emissions reduction (78%). 

While 65% have embedded sustainability into strategy, only 29% fully integrate it into capital expenditure decisions.

ESG reporting also remains a growing focus - 51% of corporate leaders saying they’re prioritising compliance and reporting standards to meet evolving demands.

Bill says: “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.”