31% flag cyber risks, 28% cite economic uncertainty: What CEOs fear most

Cybersecurity and data protection have emerged as the biggest threats to business growth for 31% of global CEOs, followed by economic uncertainty at 28%, according to the KPMG 2026 Global CEO Outlook.

The survey of 1,400 chief executives also identifies geopolitical instability and regulatory pressures as major concerns, with each cited by 26% of respondents. The findings point to a business environment in which leaders are balancing external risks with investments in technology, compliance and workforce capabilities.

Cybersecurity investment gains urgency

CEOs are increasing spending on areas they believe can help limit business risks. According to KPMG, 45% of respondents have increased investment in cybersecurity and digital risk resilience.

Regulatory requirements are also shaping business priorities. While 26% of CEOs identify regulatory pressures as a significant challenge to growth, 36% say they are investing in regulatory and compliance reporting to mitigate risks over the next three years.

The survey highlights the following concerns:

• Cyber and data security: 31% identify it as the greatest risk to growth.

• Global economic uncertainty: 28% cite it as a leading threat.

• Geopolitical instability: 26% identify it as a major growth risk.

• Regulatory pressures: 26% cite them as a significant challenge to growth.

• Cybersecurity investment: 45% report increased spending on cybersecurity and digital risk resilience.

AI remains a priority despite implementation hurdles

Despite economic uncertainty and the challenges associated with implementation, 79% of CEOs say AI remains a top investment priority over the next three years, up from 71% in 2025.

However, the survey identifies several obstacles to turning investment into results. Ethical concerns, including issues involving privacy, bias, accountability and transparency, rank as the leading challenge to AI implementation, cited by 57% of CEOs.

Cybersecurity is another major hurdle, identified by 52%, while 51% cite cost. Regulatory differences across jurisdictions also complicate adoption, with 41% saying varying levels of regulation create a barrier to implementing AI.

The survey indicates a longer timeline for returns from AI investments. While 14% of CEOs expect returns within six to 12 months, 71% anticipate returns within one to three years, compared with 67% in 2025.

Data governance and skills gaps enter the spotlight

As businesses expand their use of AI, governance is becoming a greater priority. KPMG found that 59% of CEOs are placing greater emphasis on internal data governance and controls as part of their AI and data sovereignty strategies.

Workforce readiness presents another challenge. Skills gaps, not limited to AI-related capabilities, are the biggest workforce concern for 56% of respondents. A further 52% identify employee training in AI systems as a challenge, while 47% cite attracting and retaining talent.

CEOs are responding through workforce development initiatives:

• 51% are encouraging open conversations about the future of work.

• 46% are investing in reskilling and upskilling programmes.

• 46% are providing tailored training on how AI can support employees in their roles.

• 36% say digital and technology literacy is becoming an essential leadership capability.

Leaders focus on faster decisions and risk management

The survey also points to changing expectations of senior leadership. For the second consecutive year, 47% of CEOs identify greater agility and faster decision-making under pressure as the leadership capability they most need.

Strategic foresight and scenario planning are also gaining importance, with 44% highlighting these capabilities. Meanwhile, 39% identify the ability to recognise, prioritise and manage risks as an important leadership skill.

CEOs remain divided on how much risk their organisations should take. KPMG found that 61% are maintaining their current risk appetite, while 33% are changing their approach. Of the total respondents, 16% are taking more risks to pursue opportunities and 17% are becoming more cautious.

The findings suggest CEOs are pursuing AI-led growth while strengthening security, governance and workforce capabilities. The survey’s results offer a snapshot of leadership priorities as organisations plan for the next three years, although the risks and investment choices will vary across markets and industries.

About the survey: The twelfth edition of the KPMG Global CEO Outlook surveyed 1,400 CEOs between 11 August and 21 September 2026. Respondents represented 12 markets, including India, and 13 industry sectors. All led companies with annual revenue exceeding US$500 million.