CEO Confidence Hits 5-Year Low as AI Creates a New Class of Winners

DAVOS, Switzerland – January 19, 2026 – Confidence among the world's top executives in their own company's revenue growth has plunged to its lowest point in five years, as a complex cocktail of unrealized artificial intelligence potential, mounting geopolitical threats, and persistent cyber risks dampens the global business outlook.

A stark new report from PwC's 29th Global CEO Survey reveals that a mere 30% of CEOs are confident about revenue growth over the next 12 months. This figure represents a significant drop from 38% in 2025 and a dramatic collapse from the 56% who expressed confidence in 2022. The survey, which gathered responses from 4,454 CEOs across 95 countries, paints a picture of a leadership class grappling with profound uncertainty and a growing divide between technological ambition and financial reality.

While other recent business surveys have shown a fluctuating or even slightly rebounding sentiment on the overall economy, the PwC data points to a specific and acute anxiety surrounding top-line growth. The findings suggest that as leaders navigate a landscape reshaped by rapid innovation and external shocks, the path from investment to profit has become dangerously unclear for the majority.

The Great AI Divide

At the heart of the C-suite's anxiety is artificial intelligence. The technology once hailed as a universal engine for growth is now emerging as a primary fault line, separating a small group of high-performers from a vast majority of companies still struggling to move beyond the starting line. The pressure is immense, with 42% of CEOs citing the fear of not transforming fast enough to keep pace with AI as their top concern.

Despite widespread experimentation, the financial returns remain elusive for most. An astonishing 56% of CEOs report seeing no significant financial benefit from their AI investments to date. Only a sliver—just one-in-eight (12%)—claim to have achieved both cost reductions and revenue benefits from the technology. This creates a stark chasm between the AI haves and have-nots.

The survey data indicates that the difference between success and stagnation lies in scale and strategy. CEOs reporting meaningful dual returns from AI are two to three times more likely to have embedded the technology extensively across their operations, from product development and customer acquisition to strategic decision-making. They have moved beyond isolated pilot programs to achieve enterprise-wide integration.

"2026 is shaping up as a decisive year for AI," noted Mohamed Kande, PwC Global Chairman, in a statement accompanying the release. "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—and it will widen quickly for those that don't act."

Success is not just about scale, but also about solid foundations. The report finds that organizations with established Responsible AI frameworks and robust technology environments are three times more likely to report significant financial gains, underscoring the importance of thoughtful implementation over rushed deployment.

A World of Worry: Tariffs, Cyber Threats, and Volatility

Compounding the challenge of AI monetization is a darkening external risk environment. Geopolitical instability, a recurring theme in recent business sentiment surveys, is now translating into concrete financial fears. One in five CEOs globally (20%) believe their organization is highly or extremely exposed to financial loss from tariffs in the coming year. This anxiety is particularly acute in Mexico (35%), the Chinese Mainland (28%), and the United States (22%).

Simultaneously, the threat from cyberspace has intensified dramatically. Nearly a third of CEOs (31%) now view cyber risk as a major threat to their business, a sharp increase from 24% last year and 21% two years ago. The concern is so pronounced that 84% of leaders plan to bolster their enterprise-wide cybersecurity measures as a direct response to geopolitical tensions.

These pressures are forcing leaders to re-evaluate their global footprint and build resilience. Many executives are actively planning to diversify their supply chains and implement cost-cutting measures to weather the expected turbulence. The consensus is that this era of economic and political uncertainty is not a fleeting storm but a long-term condition, with a majority of CEOs expecting it to last well beyond the next year.

The Mandate for Reinvention

In this challenging environment, simply staying the course is viewed as a failing strategy. The survey highlights a powerful consensus around the need for radical business reinvention. Over four in ten CEOs (42%) report that their company has already begun competing in new sectors over the past five years, a clear sign that industry boundaries are blurring.

This drive to reinvent extends to acquisition strategy, with 44% of CEOs planning major deals looking to invest outside their current industry. Technology remains the most coveted adjacent sector, highlighting the universal push to acquire new capabilities.

However, ambition is clashing with reality. A significant execution gap looms over these transformation plans. CEOs admit to spending nearly half their time (47%) on immediate, short-term issues with a horizon of less than one year, leaving just 16% of their focus for strategic decisions looking more than five years ahead. Furthermore, only a quarter of organizations are described as tolerating high risk in innovation or having disciplined processes to shut down underperforming projects, suggesting that the corporate immune system often rejects the very changes needed for survival.

Shifting Investment Horizons

Despite the prevailing caution, capital is not sitting idle. Over half of CEOs (51%) are planning to make international investments in the year ahead, and their destinations reveal a clear strategy of balancing stability with growth.

The United States remains the undisputed top destination for global investment, with 35% of CEOs ranking it among their top three markets. Its large domestic market, culture of innovation, and relative economic stability continue to make it a safe harbor in a volatile world.

Meanwhile, the most dramatic shift in investment sentiment is the meteoric rise of India. Interest in the South Asian giant has nearly doubled year-on-year, with 13% of CEOs now placing it among their top three investment targets. This surge reflects growing confidence in India's vast market potential and economic trajectory. The United Kingdom and Germany also remain prominent, each attracting 13% of CEO interest, followed by the Chinese Mainland at 11%.

As Kande concluded, the current climate presents a difficult choice for leaders. "In periods of rapid change, the instinct to slow down is understandable—but it's also risky. The value at stake across the global economy is increasing, and the window to capture it is narrowing. The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most."