As businesses prepare for the challenges of 2025, a new global survey of CEOs has unveiled their top business concerns.
The Conference Board’s C-Suite Outlook 2025 report, of over 500 CEOs and 1,700 executives, sheds light on the critical concerns shaping the global corporate landscape. They include intensifying trade wars and recession fears to the promise and pitfalls of artificial intelligence (AI). Here’s what CEOs worldwide say are the most pressing issues, and how they plan to navigate them.
GEOPOLITICAL RISKS: TRADE WARS & CYBERSECURITY CONCERNS
Global trade tensions continue to dominate the geopolitical agenda, with CEOs citing the escalating rivalry between the US, EU and China as a top risk.
- Trade wars top the list: Nearly 50% of CEOs in Asia and Europe and 34% of US CEOs believe that trade tensions will have a significant impact on their businesses in 2025.
- Cybersecurity remains critical: Foreign cyberattacks are a growing threat, with 45% of US CEOs and 35% of European CEOs identifying it as a high-impact risk.
- Energy prices a regional priority: Rising energy costs concern 47% of CEOs in Europe and Japan, reflecting the region’s reliance on external energy sources.
RECESSION FEARS PERSIST
Despite a slight decline in recession fears compared to 2024, economic downturns remain the top concern for 46% of CEOs globally.
- Region-specific worries: While most regions rank recession as the #1 economic issue, Japanese CEOs are more concerned about labor shortages, with 66% citing it as their top priority.
- US debt under scrutiny: Over 50% of US CEOs express deep concern about the national debt, which they see as a “ticking time bomb” that could have long-term ramifications.
SUPPLY CHAIN RESILIENCE: A GROWING PRIORITY
The supply chain disruptions of recent years have left a lasting impression, driving CEOs to reimagine their strategies for the future.
- A surge in action: 71% of US CEOs and 77% of European CEOs plan to revamp their supply chains in the next 3-5 years, up significantly from 2024.
- Top changes: While US CEOs prioritize vendor diversification, leaders in other regions focus on leveraging AI and digital technology to enhance performance tracking.
- Why it matters: Cost savings and reducing risks of future disruptions are the primary drivers of supply chain transformations.
AI & TALENT GAPS
AI continues to be a game-changer, but the lack of expertise is holding many companies back.
- Talent is the missing piece: Globally, 45% of CEOs cite a lack of expertise as the top challenge to implementing AI, far outweighing concerns about worker resistance (9%).
- AI’s current impact: CEOs report the greatest improvements in workforce productivity (44%), followed by customer satisfaction (25%) and innovation (24%).
ESG & CLIMATE CHANGE
As extreme weather events intensify, environmental, social, and governance (ESG) factors are top of mind for CEOs worldwide.
- Climate events rank high: 34% of CEOs cite climate risks as the most pressing ESG issue, second only to sustainability efforts (39%).
- Regional priorities:
- US CEOs focus on climate resilience and adaptation.
- European and Japanese CEOs prioritize carbon neutrality.
- CEOs in Asia emphasize renewable energy initiatives.
PRIORITISING INNOVATION & TECH
Faced with economic uncertainty, most CEOs are turning to innovation and technology to boost profits rather than raising prices.
- Focus on innovation: Globally, 37% of CEOs rank innovation as their top profit-growth strategy, followed by introducing new products/services (29%) and investing in technology (26%).
- AI and analytics investments: 37% of CEOs, including 57% in Europe and 31% in the US, plan to increase their marketing budgets for AI and data analytics by 10% or more.
KEY TAKEAWAYS FOR 2025
The “C-Suite Outlook 2025” report paints a picture of a rapidly changing global economy where businesses must balance geopolitical risks, economic uncertainty, and technological innovation. To stay ahead, CEOs are focusing on:
- Strengthening supply chains to mitigate disruptions.
- Closing talent gaps to fully leverage the potential of AI.
- Innovating and adapting to shifting customer demands.
- Prioritizing sustainability and climate resilience.
As 2025 approaches, one thing is clear: CEOs who embrace agility and foresight will be best positioned to navigate the challenges and seize the opportunities of the future.
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