Nearly three in five CEOs optimistic about global economic outlook as they plan headcount increases and continued AI rollout: PwC 2025 Global CEO Survey

The reinvention imperative

Consistent with the last two years, four in ten (42%) CEOs believe their company will not be viable beyond the next decade if it continues on its current path. Among those that do not expect to last without significant change, 42% cite shifts in the regulatory environment as having the biggest influence on their economic viability.

But CEOs are taking action - across all sectors, almost two-thirds (63%) have taken at least one significant action to change how their company creates, delivers, and captures value in the last five years, with CEOs that have taken more reinvention actions in the last five years reporting higher profit margins in the last 12 months.

As companies look to reinvent their business models, almost four in ten (38%) say they have begun competing in at least one new sector in the last five years - with about one-third (34%) noting this has represented over 20% of company revenue over this period.

However, the pace of reinvention is slow and a large majority of companies lack agility. When it comes to moving budget and people between projects and business units, around half of CEOs told us that they reallocate 10% or less of financial and human resources from year to year. More than two-thirds reallocate less than 20%. On average, only 7% of revenue over the last five years has come from distinct new businesses.

CEOs are optimistic about the potential of GenAI, but are looking for stronger results

CEOs are reporting tangible impact from GenAI. More than half (56%) report seeing efficiency gains in their employees' time over the last 12 months, and one-third saw revenue (32%) increases.

However, performance is somewhat below expectations expressed last year. In 2024, 46% said they expected to see profitability improvements. A year later, when we asked if they had seen those gains, only 34% said they had. Trust in AI remains a hurdle to more widespread adoption. Only a third of CEOs said they have a high degree of trust in embedding the technology into key processes in their company.

Despite this, optimism about GenAI's impacts on profitability is slightly up on last year - with 49% expecting an increase in the next 12 months. Roughly half (47%) expect to integrate AI (including GenAI) into their technology platforms over the next three years, 41% plan to integrate it into core business processes and 30% have plans for new products and service development.

While it is early days, there is nothing in our data to suggest a widespread reduction in employment opportunities across the global economy as a result of GenAI. More CEOs say GenAI has increased headcount than decreased it (17% v 13%).

Matt Wood, Global & US Commercial Technology & Innovation Officer (CTIO), PwC, said: