The KPMG 2025 Global CEO Outlook reveals a cautious yet determined landscape for corporate leaders, as CEO confidence in the global economy has dropped to its lowest level since 2021, now standing at just 68%.
Despite these challenges, a remarkable 92% of CEOs plan to increase their headcount over the next year, indicating a strong commitment to talent investment as a pathway for future growth.
While 40% forecast earnings increases of over 2.5% in the coming year, 89% anticipate engaging in merger or acquisition activities, reflecting ongoing optimism in the face of adversity.
“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 of KPMG International.
"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.” Bill Thomas
Source: KPMG 2025
A significant focus remains on artificial intelligence (AI), with 69% of CEOs planning to allocate 10–20% of their budgets to AI initiatives over the next 12 months. However, the rapid pace of AI adoption has created new challenges, with 70% of CEOs expressing concerns about competition for AI talent.
Additionally, 77% highlight workforce upskilling as a critical challenge, underscoring the intensifying race for skilled professionals in this domain.
As leaders recalibrate their strategies, 72% have adapted their growth plans to respond to the fast-changing environment. There is a notable emphasis on human-centric AI deployment, with many CEOs recognising that successful AI integration hinges on effective implementation and governance.
Concerns about ethical implications, data readiness, and regulatory frameworks are prominent, with 59%, 52%, and 50% of CEOs respectively citing these issues.
While the outlook remains cautious, climate confidence is on the rise, with 61% of CEOs expressing optimism about meeting their net-zero targets by 2030. This reflects a growing commitment to sustainability as a core component of corporate strategy.
As COOs and executive leaders in Asia navigate this complex landscape, the focus on AI and talent development emerges as a critical pathway to not only survive but thrive amidst ongoing challenges.
