CEOs around the globe are struggling with extraordinary disruption, but a new study from the Institute for Business Value, in collaboration with Oxford Economics, gives a roadmap for leading through turbulence. The 2025 CEO Study shows the importance of artificial intelligence (AI), data-driven decision-making, and bold leadership in driving business growth. Based on insights from 2,000 CEOs across 24 industries and 33 geographies, the report explores the challenges and opportunities leaders face today.
According to the study, CEOs must adopt a new mindset to capitalize on growth opportunities in volatile environments. The report defines five essential “mindshifts”:
Bold action is now synonymous with strategic leadership. A significant 64% of CEOs believe taking more risks than competitors is necessary to maintain an edge, but they emphasize the importance of calculated risks. Leaders must empower teams to experiment, fail fast, and adapt without compromising organizational trust or financial stability.
Data integration remains an uphill battle for many organizations. Half of surveyed CEOs admitted their technological investments have resulted in disconnected systems. To unlock the full potential of AI, 72% considered proprietary data critical, and 68% stressed the importance of enterprise-wide data integration to foster collaboration and innovation.
The rapid evolution of AI has created a surge in demand for skills that many organizations currently lack. CEOs are adopting a "build, buy, bot, nd borrow" strategy, combining workforce reskilling, automation, and partnerships. Nearly 67% of leaders say that differentiation hinges on having the right expertise in the right places, including leveraging external talent and AI-driven capabilities.
While groundbreaking AI projects often grab headlines, only 25% of initiatives over the past three years have delivered ROI. By focusing on AI use cases with measurable business outcomes, 65% of CEOs prioritize sustainable growth over fleeting tech trends.
AI is reshaping industries by challenging traditional business models. For example, manufacturing is shifting toward software-driven services, while retailers are prioritizing immersive customer experiences. CEOs must strike a balance between optimizing current operations and reinventing ineffective systems to advance long-term innovation.
AI is no longer a technology of the future; it’s the reality of today’s leading enterprises. The study reveals high expectations for AI’s impact on business objectives, including accelerating innovation, improving decision-making, and enhancing security. 61% of CEOs believe competitive advantage depends on advanced generative AI capabilities.
Example: Arizona’s Department of Child Safety has shown how AI can streamline operations. By incorporating virtual assistants and generative AI, the department enhanced productivity and accelerated policy updates, reducing workloads for staff while improving efficiency.
Similarly, the US Open tennis championship provides an example of how AI can enhance customer engagement. AI helped the tournament create personalized digital experiences, generating match reports, commentary, and insights based on proprietary tennis data.
Despite AI’s transformation potential, implementation is slow and laden with challenges. 60% of organizations remain in the pilot stage of generative AI deployments, even as CEOs express optimism about its eventual ROI. Barriers such as siloed data, risk aversion, and insufficient expertise hinder progress.
Another significant obstacle is balancing innovation with practicality. While many leaders are ready to employ AI, only 52% believe ongoing initiatives are yielding value beyond cost reduction. This emphasizes the need for clear KPIs to measure and scale AI effectively.
One pressing issue for CEOs is the talent gap created by rapidly evolving technologies. According to the study, 31% of the workforce will require reskilling within the next three years, and over half of leaders are actively hiring for roles that didn’t exist a year ago.
Organizations are addressing these gaps through a mix of strategies, including investing in automation, reskilling existing employees, and relying on partnerships to fill specialized roles. The study notes that 57% of CEOs are shifting non-core activities to trusted partners, even as they acknowledge risks associated with relinquishing control.
The foundation of successful AI adoption lies in a strong data architecture. Integrated data systems enable real-time decision-making, collaboration, and predictive insights. However, only a fraction of organizations are adequately prepared.
To ensure an enterprise is AI-ready, CEOs must focus on three key steps:
One of the key takeaways from the study is the importance of ROI-driven innovation. CEOs are moving away from the “fear of missing out” (FOMO) mindset, which often prioritizes trend-chasing over business value. The report suggests leaders should focus on fewer, high-quality initiatives with clear long-term benefits.
Balancing visionary projects with practical outcomes requires a disciplined approach. Organizations must set clear metrics for success and invest strategically in projects that promise both top-line growth and customer satisfaction.
The study reveals what it takes for CEOs and companies to succeed in today’s disruptive environment. By integrating AI, adopting a culture of experimentation, and addressing talent challenges, today’s CEOs can turn uncertainty into opportunity.
While digital transformation comes with risks, the rewards are substantial. Leaders who adopt the five critical mindshifts outlined in the report will be better positioned to fuel long-term growth and deliver lasting value for stakeholders.
This new business environment of accelerated innovation demands courage, confidence, and collaboration. For CEOs willing to make bold bets, AI offers not just survival but the opportunity to thrive in a reshaped business landscape.
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