AI a major factor in hiring, workforce development plans
Most chief executive officers around the world are planning to expand their headcount in the next year, with artificial intelligence being a key factor in hiring plans, according to a new report from KPMG.
Its 2025 Global CEO Outlook found that 92% of chief executives plan to increase headcount in the next 12 months.
The findings indicate cautious optimism, according to KPMG, as the share of CEOs confident in the current trajectory of the world economy declined to 68%, down from 72% in the previous year.
The majority of CEOs (88%) also noted that an ageing workforce has a moderate to high impact on recruitment, retention, and culture.
According to the report, 30% of CEOs are observing a growing generational gap on key future skills, while 24% are worried about the number of employees retiring without enough skilled workers to replace them.
"Ultimately, the leaders who can embrace market volatility and focus investments in the right strategic areas for their organisation will be the ones best placed to unlock new opportunities and build sustainable, long-term growth," said Bill Thomas, KPMG's global chairman and CEO, in a statement.
AI a factor in talent investment
The growing integration of artificial intelligence tools in workplaces is also a key factor in many organisations' plans for their workforce, according to the report.
More than six in ten (61%) employers said they are planning to hire new talent with AI and tech capabilities. It comes as 70% of leaders recognised that competition for AI talent could slow down success.
Sandy Torchia, KPMG International's Global Co-head of People, said having a rounded and people-centred employee value proposition was key.
"Because it's the human factors that will attract talent," Torchia said in a statement. "Making this resonate across the widening generational spread is another critical factor that CEOs and people leaders are grappling with in an ever-more complex world."
Meanwhile, upskilling is also a major focus for CEOs, as 77% of them agreed that workforce AI readiness and upskilling will impact their organisations over the next three years.
"As people are on the front-line of utilising AI in their daily roles, upskilling and equipping them for the task has become an enormous area of focus," Torchia said.
Part of CEOs' long-term workforce strategy in response to AI is retaining and retraining high-potential talent (71%). Others said:
- Redesigning roles and career paths to reflect AI collaboration (67%)
- Deploying staff from traditional roles to AI-enabled roles (59%)
- Planning for workforce reductions in some areas (41%)
"It's clear from our findings that CEOs are finding opportunities from disruption by investing boldly in technology, innovation, and talent," Thomas said.
"With what we are seeing, there's a careful balance required between innovation and responsibility. CEO responses on AI exemplify this, with leaders recognising the need to embrace innovation while managing concerns over ethics, regulation, upskilling, and access to talent."
The KPMG 2025 Global CEO Outlook surveyed more than 1,300 global leaders to look into their mindset, strategies, and planning tactics.
