A majority of global CEOs expect economic conditions to improve over the next three to five years, according to Arthur D. Little’s 2025 CEO Insights report. The study, which surveyed leaders of companies with over $1 billion in annual revenues, shows 75% of respondents forecast a better global outlook, up from 66% in 2024 and 22% in 2023.
The report highlights a move away from long-term static strategies toward agile, scenario-based planning, with CEOs increasingly incorporating geopolitical volatility and AI transformation into core business models. More than two-thirds of respondents anticipate positive impacts from rising state intervention, although sentiment varies by sector.
Investment remains central to growth strategies. All surveyed CEOs maintain or increase growth investment in 2025, with 39% pursuing growth above the market rate. Technology, especially AI, is viewed as a key driver, though 71% of companies still lack a company-wide AI strategy. The use of AI remains concentrated on operational efficiency rather than disruptive innovation, suggesting room for strategic expansion.
ESG has also moved to the centre of corporate strategy. About 94% of CEOs say ESG is embedded into company operations, and 88% give it equal priority to other business goals. However, ESG initiatives are increasingly expected to deliver business-grade returns rather than operate as standalone compliance efforts.
Performance improvement remains a focus, with CEOs targeting an average 8.4% annual productivity gain through investments of around 1.8% of revenues. Smaller firms are slightly more aggressive in both investment and return expectations.
In the Middle East, CEOs emphasise the need to develop local finance and technology talent to meet growing demand amid regulatory shifts and rising M&A activity.
The report stressed that success will depend on a dual focus: optimising internal capabilities while selectively using M&A to fill strategic gaps. CEOs are advised to align growth, AI, ESG, and performance initiatives under a unified strategy designed for volatility and transformation.
