KPMG CEO Outlook: Why AI and Talent Are Key Priorities

While CEO confidence in the global economy has reportedly fallen to levels not seen since the pandemic, leaders are expressing optimism for the prospects of their own firms.

According to the KPMG 2025 Global CEO Outlook, which gathered insights from 1,350 CEOs, many are turning inward, focusing on a dual strategy of technological investment and talent management to secure future growth.

The report indicates that 71% of leaders are championing this combination of investing in AI and retaining high-potential employees.

Despite widespread economic uncertainty being cited as the foremost threat to stability, 79% of CEOs are optimistic about their company’s outlook.

This confidence is reflected in their growth strategies, with the majority anticipating revenue growth and an increased workforce over the next three years.

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

Prioritising talent and technology for resilience

To navigate persistent disruption in the business environment, leaders are prioritising resilience through technology, talent and ESG initiatives.

The study shows that 77% of CEOs believe AI readiness and employee upskilling will directly impact their long-term success.

However, this focus has created a competitive landscape for skilled individuals, with 70% of leaders viewing the competition for AI talent as a major constraint on their ambitions.

In response, organisations are rethinking their approach to workforce development.

Key actions being taken include:

• Rethinking employee training and development programmes (79%)
• Focusing on the retention of top talent (71%)
• Actively hiring for new AI-related skills (61%)

Sandy Torchia, Global Co-Head of People at KPMG, explains that as AI becomes a major area of focus, the demand for AI talent will only intensify.

She says: “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.”

Balancing AI integration with workforce concerns

The push for technological advancement is not without its challenges.

Leaders are accelerating investment in AI, with 71% naming it a top priority, an increase of 7% from the previous year.

While 67% expect a return on this investment within one to three years, significant concerns remain.

According to the report, 59% of CEOs cite ethical issues, 52% point to data readiness and 50% mention a lack of regulation as primary hurdles.

Beyond technical and ethical considerations, leaders are also managing the human impact of AI integration.

The cultural impact of new technology is a concern for 63% of CEOs, while 33% face resistance from employees.

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

ESG goals and their link to data

Confidence among CEOs in achieving their climate targets is on the rise. The KPMG report shows 61% feel they are on track to meet their 2030 net-zero goals, an increase from 51% in the previous year.

However, challenges in decarbonising supply chains and a lack of internal expertise were named as key issues by 25% and 21% of leaders, respectively.

AI is increasingly viewed as a crucial tool for advancing ESG objectives. Many leaders see its potential in improving data reporting (79%) and helping to reduce emissions (78%).

While 65% of CEOs report that they have embedded sustainability into their corporate strategy, only 29% have fully integrated it into capital expenditure decisions, which could suggest a gap between intention and financial commitment.