CEO Confidence Hits a Five‑Year Low * Science and Technology Times

Global CEOs report their lowest revenue‑growth expectations in five years, reflecting economic pressure, rapid technological change and rising geopolitical risks.
Many leaders struggle to turn AI investments into measurable financial gains, even as early adopters begin to pull ahead.
The latest PwC Global CEO Survey suggests that 2026 may become a decisive year separating AI leaders from those falling behind.

Revenue Expectations Decline Sharply

CEO expectations for revenue growth have fallen to their lowest point in half a decade, according to PwC’s 29th Global CEO Survey presented at the World Economic Forum in Davos. Only 30 percent of the 4,454 CEOs surveyed across 95 countries expect revenue to increase over the next 12 months, down from 38 percent in 2025 and 56 percent in 2022. The results indicate that many companies have yet to convert their investments into tangible financial outcomes. Leaders are navigating an increasingly complex environment shaped by rapid technological shifts, geopolitical uncertainty and persistent economic pressure.

Concerns about falling behind technologically have intensified. Forty‑two percent of CEOs fear they are not adapting quickly enough to new technologies, including artificial intelligence. This level of concern surpasses worries about innovation capabilities or long‑term business viability, both cited by 29 percent of respondents. The survey highlights a widening gap between companies that successfully integrate AI and those still experimenting without clear returns.

AI Adoption Creates a Growing Performance Divide

Although AI experimentation is widespread, only 12 percent of CEOs report clear, measurable benefits from their initiatives. One‑third say they have invested significantly in AI and already see revenue growth as a result, while 56 percent have yet to observe meaningful financial impact. Companies that have integrated AI across products, services, customer engagement and strategic decision‑making are two to three times more likely to report additional revenue. This suggests that broad, organization‑wide adoption is a key factor in achieving returns.

Strong AI foundations also play a crucial role. Leaders who say their organizations have responsible AI frameworks and scalable technology environments are three times more likely to report substantial financial gains. PwC’s separate analysis shows that companies applying AI widely across offerings and customer experiences achieve profit margins nearly four percentage points higher than those still in early stages. Mohamed Kande, PwC’s global leader, emphasized that 2026 could be a pivotal year as early adopters accelerate ahead while others struggle to move beyond pilot projects.

Rising External Risks Add Pressure

Tariff and Cybersecurity Concerns Intensify

CEO confidence continues to decline as exposure to external risks grows. One in five leaders believes their organization faces significant financial risk from tariffs in the coming year, though exposure varies widely by region. Only 6 percent of Middle Eastern CEOs report high tariff risk, compared with 28 percent in mainland China and 35 percent in Mexico. In the United States, 22 percent of CEOs expect substantial tariff‑related challenges.

Cybersecurity concerns have risen sharply. Thirty‑one percent of CEOs now cite cyber risks as their top external threat, up from 24 percent last year and 21 percent two years ago. Eighty‑four percent say they plan to strengthen cybersecurity in response to geopolitical tensions. Worries about macroeconomic volatility, technological disruption and geopolitical instability have also increased, while inflation fears have eased slightly from 27 to 25 percent year‑over‑year.

A Growing Need for Strategic Renewal

Despite the challenging outlook, CEOs increasingly view continuous renewal as essential for growth. Forty‑two percent say their companies have entered new sectors over the past five years. Among those planning major acquisitions, 44 percent expect to invest outside their current industry, with technology emerging as the most attractive adjacent sector. This shift reflects a broader push to diversify revenue streams and adapt to changing market conditions.

International expansion remains a priority for many leaders. Slightly more than half plan cross‑border investments in the coming year. The United States remains the top target market, selected by 35 percent of respondents, followed by the United Kingdom and Germany at 13 percent each. Interest in India has nearly doubled, with 13 percent naming it among their top three destinations for international investment.

Execution Challenges Slow Transformation

Innovation Processes Lag Behind Ambitions

While CEOs recognize the need for transformation, many organizations struggle to execute effectively. Only one in four leaders says their company accepts high levels of risk in innovation projects. A similar proportion reports having clear processes for shutting down underperforming initiatives. Dedicated innovation hubs or corporate venture functions remain relatively rare, limiting the ability to scale new ideas.

Time allocation also poses a challenge. CEOs say 47 percent of their time is spent on issues with a time horizon of less than one year. Only 16 percent is dedicated to decisions that look beyond five years. This imbalance may hinder long‑term strategic planning, especially in areas such as AI, where sustained investment and organizational change are required.

A Narrowing Window for AI Transformation

The survey suggests that the gap between AI leaders and laggards is already visible in financial performance and competitive positioning. Companies that move quickly to integrate AI at scale are beginning to see measurable advantages. Those that remain stuck in pilot mode risk falling further behind as early adopters refine their capabilities. The next two years may determine which organizations emerge as long‑term winners in the AI‑driven economy.