AI, cybersecurity and talent gaps dominate CEOs' business priorities in 2026: KPMG

Artificial intelligence (AI), cybersecurity and workforce capability are emerging as defining business priorities for global CEOs in 2026, as organisations balance technology investments with growing operational and economic uncertainties.

According to the 12th KPMG Global CEO Outlook, 79% of CEOs consider AI a top investment priority over the next three years, up from 71% in 2025. Meanwhile, 45% plan to increase spending on cybersecurity and digital risk resilience, while 56% identify skills gaps as a significant workforce challenge.

The findings highlight how businesses are increasingly linking technology adoption with security, employee capabilities and long-term growth. The survey also points to a widening gap between executives' confidence in their own organisations and their assessment of the global economy.

Business confidence rises despite global uncertainty

The KPMG survey found that confidence in organisations' three-year growth prospects increased to 84% in 2026, compared with 79% in 2025.

However, confidence in the global economy moved in the opposite direction, falling to 65% from 68% in the previous year. This represents the lowest reading since 2021.

Earnings expectations also improved, with 68% of CEOs anticipating annual growth of at least 2.5%, compared with 61% in 2025.

Despite stronger expectations for their businesses, 79% of respondents said they faced greater pressure to ensure their organisations' long-term prosperity.

Cybersecurity and data security emerged as the leading threats to business growth, cited by 31% of CEOs. Other major concerns included:

• Global economic uncertainty: 28%

• Geopolitical instability: 26%

• Regulatory pressure: 26%

• Supply chain resilience: 24%

The findings suggest that business leaders are preparing for multiple sources of disruption rather than focusing on one dominant risk.

AI investment gathers pace, but implementation remains challenging

AI continues to occupy a central position in corporate investment strategies, with 79% of CEOs identifying it as a priority over the next three years.

The survey found that 66% believe their organisations are moving at the right pace or ahead of the curve in AI adoption. Another 29% described themselves as cautiously optimistic, while approximately 5% remained uncertain or said they were struggling.

Spending expectations also reflect the growing importance of the technology. Around 72% of CEOs expect to allocate more than 10% of their budgets to AI over the next year.

However, investment commitments are accompanied by concerns around implementation, governance and operational readiness.

The most significant AI implementation challenges identified by respondents were:

• Ethical challenges: 57%

• Cybersecurity: 52%

• Cost: 51%

• Data sovereignty requirements: 50%

The survey also found that 59% of CEOs said AI and data sovereignty were prompting greater attention to internal data governance and controls.

Meanwhile, 66% expect the pace of AI regulation to become a barrier to organisational success.

Beyond implementation, more than eight in ten CEOs expect AI integration, cybercrime and technology infrastructure costs to influence their organisations' long-term prosperity.

On returns, 71% anticipate realising benefits from AI investments within one to three years, while 17% expect returns within 12 months.

Skills shortages emerge as a major workforce concern

As organisations expand AI adoption, workforce readiness is becoming another important consideration for business leaders.

The KPMG survey found that 56% of CEOs identify skills gaps as a significant workforce challenge, making it the leading people-related concern. Upskilling and training employees to work with AI systems followed at 52%, while attracting and retaining talent was cited by 47%.

Despite these challenges, expectations around workforce expansion remain positive. Nearly 89% of CEOs expect their organisations' overall headcount to increase over the next three years.

However, 62% anticipate that the increase will remain below 5%.

Businesses are also planning measures to prepare employees for changing job requirements. Over the next 12 months:

• 51% plan to communicate openly about AI's impact on roles.

• 46% intend to introduce reskilling and upskilling programmes.

• 46% plan tailored training to help employees understand how AI can support their work.

Workforce resistance appears less significant than capability-related concerns, with 26% of CEOs rating it as a major or considerable AI implementation challenge.

The findings place greater emphasis on developing existing employees' capabilities alongside efforts to recruit specialised technology talent.

Sustainability becomes part of investment decisions

Sustainability is also gaining a stronger position in corporate strategy, with CEOs increasingly considering its financial and operational implications.

According to the report, 63% of respondents said their primary response over the past year was to embed sustainability more deeply into their business strategies.

Another 21% said they were refocusing on issues most critical to their organisations, while 14% were expanding their sustainability efforts.

Investment decisions are reflecting this shift. Around 70% of CEOs consider the costs and potential returns of sustainability initiatives in at least some investment decisions. This includes 29% who incorporate these considerations into every major capital decision.

However, regulatory differences across markets remain a challenge, with 91% reporting moderate or significant difficulties arising from varying sustainability regulations and expectations.

The survey also identifies supply chain decarbonisation, inconsistent regulations, costs and skills shortages as barriers to achieving Net Zero or similar climate ambitions.

AI presents another consideration for companies pursuing sustainability objectives. While around eight in ten CEOs believe the technology can support climate priorities, 95% acknowledge concerns within their organisations about AI's broader environmental impact.

Energy sourcing is also becoming part of business planning. Over the next three to five years, 49% expect to prioritise diversifying external energy supplies through renewable or lower-carbon sources.

Another 37% plan to focus primarily on reducing energy demand through efficiency, while 13% expect to add dedicated generation, storage or backup capacity.

What the findings indicate for businesses

The KPMG 2026 Global CEO Outlook is based on responses from 1,400 CEOs collected between 11 August and 21 September 2026.

The survey covers 12 markets, including India, Australia, Canada, China, France, Germany, Italy, Japan, the Netherlands, Spain, the UK and the US. It spans 13 industries, including banking, technology, manufacturing, healthcare, insurance and energy.

All respondents lead organisations with annual revenues exceeding US$500 million, while one-third represent companies with revenues above US$10 billion.

For businesses operating in India, the findings offer an international perspective on the priorities shaping corporate investment, technology adoption and workforce planning. However, the reported percentages represent the overall global survey and should not be interpreted as India-specific figures.

The findings point towards an increasingly interconnected business agenda, where AI adoption, cybersecurity, workforce development and sustainability influence one another.

For CEOs, the challenge will be to translate investment commitments into measurable business outcomes while strengthening governance, building employee capabilities and preparing organisations for evolving risks.