Global CEO confidence at five-year low as AI divides winners and laggards, PwC survey shows at Davos

CEO confidence in revenue growth has fallen to its lowest level in five years, as business leaders struggle to turn artificial intelligence investments into tangible financial returns and contend with mounting geopolitical and cyber risks, according to PwC’s 2026 Global CEO Survey.

The survey, released at the World Economic Forum in Davos, shows that just 30% of CEOs are confident about revenue growth over the next 12 months, down sharply from 38% in 2025 and 56% in 2022. The findings highlight a widening gap between companies that have successfully scaled AI and those still stuck in pilot mode.

Based on responses from 4,454 CEOs across 95 countries and territories, the survey paints a picture of cautious leadership at a time when technological change is accelerating but returns remain uneven.

Artificial intelligence has emerged as a defining divide in corporate performance. While experimentation is widespread, only one-in-eight CEOs (12%) say AI has delivered both cost savings and revenue growth. A further 33% report gains in either costs or revenues, while more than half (56%) say AI has yet to produce any meaningful financial benefit.

The difference, PwC suggests, lies in execution. CEOs who report tangible AI returns are two to three times more likely to have embedded AI extensively across products and services, customer engagement, and strategic decision-making. Strong foundations also matter: organisations with 

Separate PwC analysis indicates that companies applying AI broadly across products, services and customer experiences achieved nearly four percentage points higher profit margins than those that did not.

Mohamed Kande, PwC’s Global Chairman, said the year ahead would be pivotal. “2026 is shaping up as a decisive year for AI. A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots. That gap is starting to show up in confidence and competitiveness.”

The pace of transformation is now the dominant concern for CEOs. 42% cite keeping up with technological change as their top worry, ahead of innovation capability and long-term business viability.

Confidence has also been eroded by rising exposure to external risks. One-in-five CEOs globally say their organisation faces a high or extreme risk of financial loss from tariffs in the next year, with exposure varying sharply by region. While only 6% of Middle East CEOs report high exposure, the figure rises to 28% in the Chinese Mainland, 35% in Mexico, and 22% among US CEOs.

Cyber risk is another growing concern. Thirty-one percent of CEOs now rank it as a major threat, up from 24% last year and 21% two years ago. In response, 84% say they plan to strengthen enterprise-wide cybersecurity as part of their geopolitical risk strategy.

Worries about macroeconomic volatility, technology disruption and geopolitics have also edged higher, even as concern about inflation has eased slightly.

Despite the subdued outlook, many CEOs recognise that reinvention is no longer optional. More than four in ten say their companies have entered new sectors over the past five years, and among those planning major acquisitions, nearly half expect to invest outside their current industry.

Technology is the most attractive adjacent sector.

International investment appetite remains resilient. Over half of CEOs plan cross-border investments in the year ahead, with the United States retaining its position as the top destination. Interest in India has nearly doubled year-on-year, with 13% of CEOs now ranking it among their top three investment destinations.

However, significant execution gaps remain. Only one in four CEOs say their organisation tolerates high risk in innovation, has disciplined processes to shut down underperforming initiatives, or operates a dedicated innovation or corporate venturing function.

“In periods of rapid change, the instinct to slow down is understandable, but it’s also risky,” Kande said. “The value at stake across the global economy is increasing, and the window to capture it is narrowing.”

As AI, geopolitics and cyber risk continue to reshape the business landscape, the survey suggests that confidence will increasingly hinge not on ambition, but on the ability to execute at scale.