Technology

AI A top Investment Priority For CEOs – KPMG

Amanda Cheesley Deputy Editor October 22, 2025

AI A top Investment Priority For CEOs – KPMG

Sixty-nine per cent of CEOs plan to allocate 10 to 20 per cent of their budgets to AI over the next 12 months. 

CEO confidence in the global economy has hit a five-year low, according to the KPMG 2025 Global CEO Outlook, as corporate leaders focus investments on artificial intelligence, talent and risk resilience to sustain and fuel future growth.

The annual survey of more than 1,300 global leaders reveals a cautious outlook among CEOs, driven by persistent geopolitical tensions and economic uncertainty.

The difficult landscape is prompting a shift in leadership approach, with many adapting their growth strategies to manage the complex world. Sixty-eight per cent of CEOs are confident in the trajectory of the world economy – down from 72 per cent last year and continuing a long-term trend of declining confidence.

Despite the headwinds, cautious optimism persists, the report shows, with a majority of leaders focusing on investment in talent to drive a return to growth. Ninety-two per cent of CEOs said they’re planning to increase headcount over the next three years, while many remain upbeat on healthy earnings growth and remain keen on M&A. Sixty-one per cent forecast earnings increases of more than 2.5 per cent in the coming three years, while 89 per cent 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 per cent), AI workforce readiness or upskilling of workforce on AI (77 per cent) and success integration of AI into business processes (75 per cent) continuing to loom large, the report continues.

Economic and geopolitical turbulence is forcing CEOs to rethink their strategy. Most (72 per cent) have already adapted their growth plans, but leaders remain divided on what specific capabilities are needed to respond to a fast-changing and unpredictable environment, with greater agility and faster decision-making (26 per cent) vying with transparency in communication (24 per cent), and the ability to identify, prioritize and manage risks (23 per cent) for top priority.

On China, the report shows that 88 per cent of Chinese CEOs express confidence in China’s economic outlook â€“ an increase of 17 per cent from last year, marking the highest level in recent years. Twenty-six per cent of Chinese CEOs have identified advancing business digitalization and connectivity as their top strategic priority for the next three years, exceeding the global average of 18 per cent. The value of AI applications is beginning to be realized. Eighty-six per cent of Chinese CEOs expect to see returns on their AI investments within three years, up from 18 per cent last year. Notably, one in five anticipate achieving returns in less than a year. Fifty-five per cent of China CEOs are prioritizing compliance and reporting standards to meet investor and regulatory demands, compared with 51 per cent globally, the report shows.

Leaders prioritizing human-centric AI deployment
CEOs, navigating a shifting economic landscape, are doubling down on AI and technological innovation. Nearly three quarters of leaders say AI is a top investment priority for 2026, with 69 per cent planning to invest between 10 and 20 per cent of their budgets to AI over the next 12 months.

However, an accelerated global adoption of AI is creating new challenges for the boardroom. CEOs express significant reservations regarding ethical implications (59 per cent), data readiness (52 per cent), and lack of regulation (50 per cent). A clear consensus is emerging that robust governance frameworks will be critical for AI's sustained success.

CEOs also recognize that the success of AI adoption depends on effective implementation; 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 per cent of CEOs say they are actively hiring new talent with AI and broader technology skills, while three quarters (70 per cent) report concerns about competition for AI talent and 77 per cent highlight workforce upskilling as a challenge, underscoring the intensifying race for talent.

Climate confidence on the rise
While attitudes toward ESG vary across regions, the KPMG 2025 CEO Outlook indicates that most corporate leaders remain committed to their sustainability goals and are increasingly confident of meeting them.

Notably, a majority (61 per cent) of CEOs now show 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.

KPMG said it is clear from their findings that CEOs are finding opportunities from disruption by investing boldly in technology, innovation and talent. With what they are seeing, a balance is needed between innovation and responsibility. CEO responses on AI exemplify this, with leaders recognizing the need to embrace innovation while managing concerns over ethics, regulation, upskilling and access to talent. 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, the firm said.

Register for FamilyWealthReport today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes