Third annual edition of The CEO Response finds leaders prioritizing AI and business alliances as demands on CEO leadership grow
ZURICH--(BUSINESS WIRE)--Artificial intelligence has emerged as the most critical challenge facing CEOs worldwide, ahead of geopolitical instability and economic uncertainty, according to The CEO Response, Egon Zehnder's third annual study of 843 global chief executives.
Nearly half of CEOs (48%) consider the adoption and impact of AI an extremely critical challenge, up from 37% in 2025. Geopolitical instability (44%) and economic uncertainty (40%) follow, while 62% expect geopolitical disruption to increase over the next 12 months.
These challenges are shaping where CEOs are focusing their efforts. Half (50%) identify AI investment among the three most important changes they're making to their organizations, followed by innovation (48%) and improving their cost base (41%). By comparison, 29% selected upskilling and talent development as a top priority.
“CEOs can invest in AI much faster than they can change how an organization works,” said Francesco Buquicchio, Global CEO of Egon Zehnder. “That gap matters. Leaders need to be clear about where the technology will make a difference, who has the skills to put it to use and what they must keep investing in for the long term.”
As CEOs navigate these challenges, trusted relationships are becoming an increasingly important source of support. When asked to identify their most important external relationships, 87% selected business alliances, followed by informal CEO networks (47%) and public-private partnerships (32%). Among those who selected business alliances, 45% say these relationships have become even more important over the past year.
CEOs are also navigating difficult strategic trade-offs. More than a third (34%) identify balancing short-term performance with long-term investment as their greatest challenge, followed by growth versus cost and efficiency (26%).
The study also reveals the growing personal demands of leadership. More than eight in ten CEOs (82%) agree that navigating today's uncertainty requires levels of endurance beyond anything they had previously imagined, including the ability to sustain clarity, energy and direction through prolonged disruption.
"Successful leadership today means staying open-minded and continually challenging our own perspectives, also when it comes to strategic alliances. The CEO Report underlines that geopolitical challenges remain a strategic priority for many CEOs. We see that business leaders are working ever closer together to navigate persistent uncertainty. The next step is to strengthen alliances between the private sector and governments," says Lars-Hendrik Röller, Founder and Host of the Berlin Global Dialogue.
Looking ahead, 85% believe their success will depend on strengthening both their personal leadership capabilities, including resilience, curiosity and self-awareness, and their business judgment, execution and strategic expertise. Nearly half (47%) believe these dimensions must be fully integrated.
“The hard part isn't recognizing that the world is changing. It's making decisions when the trade-offs are real and the answers aren't obvious,” said German Herrera, Chair of Egon Zehnder. “CEOs have to protect what matters today while preparing their organizations for what comes next, without pretending they can predict it. That takes judgment, curiosity and people around them who are willing to challenge their thinking.”
Now in its third year, The CEO Response examines how chief executives are responding to an increasingly complex global environment and preparing themselves and their organizations for the future. The findings are being presented at the Berlin Global Dialogue, which brings together leaders from business, policy and academia to address pressing global economic and geopolitical challenges.
For more information and to access the full report, please visit: https://www.egonzehnder.com/the-ceo-response.
About Egon Zehnder
Egon Zehnder is the world’s premier leadership advisory firm, helping organizations solve their most complex leadership challenges through executive search, board advisory, CEO succession, leadership assessment, and leadership development. With more than 600 consultants across 71 offices and 37 countries, the firm advises CEOs, boards, and leadership teams around the world.
For more information, visit egonzehnder.com and follow us on LinkedIn.
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