CEOs are doubling down on AI investment and talent to power them through an uncertain economy, according to the latest research from KPMG, which has revealed a cautious outlook driven by rising geopolitical tensions.

The professional services giant’s 2025 Global CEO Outlook found that confidence in the global economy has continued to slide, with only 68% of CEOs optimistic about its trajectory – down from 72% last year, as firms scramble to adapt to increasingly complex global conditions.

Despite the headwinds, the study notes that a feeling of cautious optimism persists, with KPMG finding a significant majority of leaders focusing on investment in talent and tech to drive a return to growth.

Almost all (92%) of business leaders said they plan to increase headcounts over the next year, while nearly three-quarters (71%) of CEOs cited AI as their top investment priority for 2026, with 69% planning to invest up to a fifth of their budgets in AI over the next twelve months.

The data shows that CEOs are ramping up tech investments in the belief that returns will take a while to materialise. The majority (67%) think it will take between one and three years to realise a return on the implementation of AI, while 12% anticipate it taking up to five years.

Not a single one of the 1,300 global CEOs surveyed expected their AI investments to pay off within six months.

Even so, business leaders are confident that AI will eventually drive growth, with 57% predicting that agentic AI will have a significant impact on their organisation alongside their efforts in genAI.

However, the accelerated adoption of AI is creating new challenges for the boardroom. CEOs expressed reservations regarding the ethical implications of deployment (59%), their own data readiness (52%), and the lack of regulation (50%), with a clear consensus emerging that robust governance frameworks will be critical for AI’s success.

KPMG said that CEOs are also recognising that the success of their AI ventures depends on a people-led deployment of new technology, with most CEOs (77%) saying AI readiness for AI and targeted upskilling will be key to growth over the next three years.

While concerns persist that AI could lead to widespread job losses, 61% of CEOs say they are actively hiring for AI and broader technology skills, while almost three-quarters (70%) report concerns about competition for AI talent, a figure underscored by the fact that 77% cited workforce upskilling as a core challenge.

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That dearth of tech talent has led firms to take active steps to bolster their ranks, including 79% focusing on retaining and retraining high-potential talent, while 67% are redesigning roles and career paths to reflect AI collaboration.

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

“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, regulation, 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.”