The KPMG 2025 Outlook shows CEOs increasing AI investments while addressing workforce skills gaps and rising compliance demands across global markets.

CEOs expand AI investments despite skills gaps: KPMG

Kathakali Dutta
3 Min Read

KPMG said on Wednesday that private-company CEOs across major markets expect wider AI deployment in 2025, as the firm released its Global Private Company CEO Outlook. The update matters now because leaders must handle workforce shortages, market expansion plans and new compliance pressures.

What KPMG found in its 2025 survey

KPMG reported that CEOs now connect AI projects to performance improvements and risk management. Leaders said the technology supports responses to regulatory shifts and geopolitical uncertainty. Many pointed to government incentives as a factor pushing their digital plans.

The survey also showed that 48% of CEOs aim to enter new regions to diversify operations. About 30% expect to pursue high-impact M&A during the next three years to strengthen capabilities. Nearly half plan to raise compliance and reporting standards to meet investor expectations.

Impact on companies and workforce

KPMG said AI investment momentum is rising, yet workforce capability remains a barrier. CEOs reported shortages in AI-related skills and wider gaps in digital ability across age groups. Companies have started revising roles as part of talent restructuring.

The report stated that firms continue to expand training because productivity gains depend on employee readiness. Many organisations face pressure to retrain workers at scale as AI becomes central to operations.

How CEOs view the operating environment

Akhilesh Tuteja, partner and national leader for clients and markets at KPMG in India, said private-company CEOs now reshape business models instead of reacting defensively to disruption. He said leaders consider technology and innovation key to building stable growth in unpredictable conditions. KPMG also noted that CEOs face more attention on digital governance, resilience and workforce strategy. Leaders cited cybersecurity exposure, political volatility and new ESG demands as ongoing pressures.

KPMG’s assessment of AI deployment

The report said CEOs expect operational improvements as AI experimentation expands. However, they also pointed to regulatory uncertainty, data readiness and workforce strength as factors that could influence the pace of adoption.

KPMG concluded that progress in 2025 will rely on how well companies align AI investments with people strategy to prevent technology growth from outpacing workforce capability.

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