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

11 February 2025 – 58% of CEOs around the world expect global economic growth to increase over the next 12 months, according to PwC’s 28^th Annual Global CEO Survey, launched at the World Economic Forum Annual Meeting.

The report, which surveyed 4,701 CEOs across 109 countries and territories, including in Bermuda and the Caribbean, also finds that 42% expect to increase headcount by 5% or more in the next 12 months – more than double the proportion who expect headcount decreases (17%), and up from 39% last year.

Within the global Financial Services sector, 64% of CEOs believe economic growth globally will increase, and in the Caribbean region, 67% of CEOs agree it will improve.

PwC’s Survey finds Insurance and reinsurance CEOs are more confident in their company's revenue growth over the next 12 months (56%) compared to all CEOs globally (38%). However, CEOs in the Insurance industry are twice as likely (30%) to anticipate high exposure to climate change risks in the next year compared to the global average (14%).

Additionally, 41% of Banking and Capital Markets CEOs foresee high exposure to cyber risks, compared to 24% globally and 33% among Insurance leaders.

Consistent with the last two years, four in ten (42%) CEOs globally believe their company will not be viable beyond the next decade if it continues on its current path.The number is similar in the Financial Services industry (41%).

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; this number is even higher for Insurance leaders (59%) and Banking (58%). Disruptive technologies are seen as the greatest influence on company viability by 52% of Banking and Capital Markets and 47% of Insurance CEOs, compared to 27% globally, and 23% of Asset and Wealth Management CEOs.

Arthur Wightman, Territory Leader, PwC Bermuda, said: “We are in a time of opportunity and technological change. Businesses globally and in Bermuda need to fundamentally reinvent how they create value if they are to thrive in the future. As CEOs embrace change and new technologies, PwC’s role is to guide clients through critical decisions and help them seize emerging opportunities. Collaboration across borders, industries, and disciplines is essential to delivering bold, market-leading solutions."

While CEOs globally are optimistic about the global economy, macroeconomic volatility (29%) and inflation (27%) nevertheless remain the top risks for the year ahead cited by CEOs globally.

Mohamed Kande, Global Chairman, PwC, said: “This year’s CEO Survey findings highlight a stark juxtaposition – business leaders around the world are optimistic about the year ahead, but also know they must re-invent how they create, deliver and capture value. Emerging technologies such as GenAI, shifts in geopolitics, and the climate transition are all revolutionising how the economy works. New business ecosystems are forming, transforming how companies compete and create value. To thrive, business leaders must act now and take bold decisions around their strategy – ranging from people, footprint and supply chain, right through to reinventing their business model.”

The reinvention imperative

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 globally 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. Across FS sectors, the number was similar with 54% of Insurance CEOs reporting seeing efficiency gains in their employees’ time from GenAI; while 27% of Insurance CEOs and 36% of Banking and Capital Markets CEOs said they saw revenue increases from GenAI.

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%).

Climate investments are paying off

As the climate transition continues to impact businesses, CEOs globally continue to take action. When we asked CEOs to take stock of the financial impact of climate related investments over the last five years, we found that these moves were six times more likely to have resulted in increased revenue (33%) than decreased revenue (5%). In addition, nearly two-thirds of CEOs reported that climate related investments had either reduced costs or had no significant impact on costs.

However, challenges remain around initiating climate related investments: CEOs that made such investments cite regulatory complexity as the top factor (24%) inhibiting their companies’ ability to initiate those investments, as opposed to lower returns on investment (18%) or lack of buy-in from management or the board (6%).