CEO confidence in the global economy has hit a five-year low, according to the KPMG 2025 Global CEO Outlook, as corporate leaders focus strategic investments in AI, talent, and risk resilience to sustain and fuel future growth.
The challenging landscape is prompting a shift in leadership approach, with many adapting their growth strategies to navigate today’s complex world. 68 percent of CEOs are confident in the current trajectory of the world economy – down from 72 percent last year and continuing a long-term trend of declining confidence.
The annual survey of more than 1,300 global leaders reveals a cautious outlook among CEOs, driven by persistent geopolitical tensions, economic uncertainty, climate challenges, and evolving digital demands.
Raymond Campbell, Country Leader, KPMG in Caricom, said:
“Across Caricom, CEOs are facing similar global challenges, but the impact on our small, open economies is even more pronounced. The report points to the fact that resilience in our region must be built deliberately—through resilient infrastructure, smarter technology investments, stronger talent development, and a deeper understanding of emerging risks. While the Caricom region may not be investing in AI at the pace of larger markets, the direction is clear. To be economically sustainable, and to stay competitive, we must prioritise use of AI and its deployment in all aspects of planning and implementation and develop digital capability, talent, and organisational resilience. Preparedness is no longer optional; it’s a strategic advantage.”
Navigating uncertainty. CEOs are adapting and moving forward
Despite the headwinds, cautious optimism persists, with a significant majority of leaders focusing on investment in talent to drive a return to growth. 92 percent of CEOs say they’re planning to increase headcount over the next 12 months, while many remain upbeat on healthy earnings growth and remain keen on mergers and acquisitions. 40 percent forecast earnings increases of more than 2.5 percent in the coming twelve months, while 89 percent 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 percent), AI workforce readiness or upskilling of workforce on AI (77%) and success integration of AI into business processes (75 percent) continuing to loom large.
Economic and geopolitical turbulence is forcing CEOs to rethink their leadership and strategy. Most (72 percent) have already adapted their growth plans, but leaders remain divided on what specific capabilities are needed to respond to today’s fast-changing and unpredictable environment, with greater agility and faster decision making (26 percent) vying with transparency in communication (24 percent) and the ability to identify prioritize risks and manage risks (23 percent) for top priority.
Leaders prioritizing human-centric AI deployment
CEOs, navigating a shifting economic landscape, are doubling down on AI and technological innovation. Nearly three quarters (71percent) of leaders say AI is a top investment priority for 2026, with 69 percent planning to invest between 10 and 20 percent 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 percent), data readiness (52 percent) and lack of regulation (50 percent). A clear consensus is emerging that robust governance frameworks will be critical for AI’s sustained success.
The report reveals that CEOs recognize the success of AI adoption depends on effective implementation and 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 percent of CEOs say they are actively hiring new talent with AI and broader technology skills, while three quarters (70 percent) report concerns about competition for AI talent and 77 percent highlight workforce upskilling as a challenge, underscoring the intensifying race for talent.
Chris Brome, Head of Advisory, KPMG in Caricom, said:
“For Caribbean organisations, these global trends offer both a warning and an opportunity. As AI adoption accelerates worldwide, our markets cannot afford to be passive observers. Even if the pace of investment in the region is more measured, the priority areas are the same – governance, data readiness, and talent. This is the moment for regional businesses to lay the groundwork by upskilling their people, strengthening cyber and technology resilience, and building the core digital capabilities needed to compete in an increasingly AI-enabled global economy.”
