The IBM Institute for Business Value, in collaboration with Oxford Economics, surveyed 2,000 chief executives across 24 industries and 33 regions during the first quarter of 2025. Their aim was to understand how today’s leaders are confidently responding to a world of rapid transformation and emerging opportunities. The findings reveal that the most successful executives are embracing change proactively, using data and technology to turn uncertainty into a source of strength and competitive advantage.
Predictability: The New Business Currency
For chief executives in 2025, forecast accuracy has become the single most important priority, jumping from fourth place in 2024 and a distant 15th in 2023. This change reflects a deeper realisation that the ability to anticipate market shifts, customer needs, and operational outcomes will distinguish the leaders in a rapidly evolving business landscape shaped by artificial intelligence (AI).
While productivity and profitability remain vital—ranked second in 2025 compared with top position in 2023, forecast accuracy’s rise suggests a shift in how organisations plan for the future. Innovation, once the leading priority in 2024, now sits comfortably at third, showing how companies are balancing creativity with strategic foresight.
Alongside these priorities, operational challenges such as supply chain performance have surged to the forefront. From 14th place in 2023, supply chains now represent the most urgent concern for chief executives, highlighting the importance of resilience and agility in global operations. At the same time, talent recruitment and retention have climbed from tenth to second place, reflecting how securing the right skills is essential for sustained success.
Taking Calculated Risks with Confidence
The research shows that 64% of chief executives recognise the need to take greater risks than their competitors to maintain an edge. Importantly, this willingness to embrace risk is not reckless; rather, it is a deliberate, information-driven approach grounded in data and robust systems. Only 37% believe it is preferable to move fast and make mistakes rather than be cautious and precise when adopting new technologies. This balance between speed and accuracy reflects what might be called “confident courage” — a strategic mindset that combines boldness with insight.
“Pessimists sound smart, but optimists make money. I think there are opportunities when there are market dislocations, and if you feel like you have an information advantage, you should lean into risk.” Stephen J. Rich, Chairman, CEO, and President, Mutual of America Financial Group
Building a strong leadership core is essential. Nearly 70% of executives report that their organisation’s success depends on having a broad leadership team with deep strategic understanding and the authority to make decisions quickly. This structure supports agile responses to emerging challenges without causing organisational disruption.
Customer Trust as a Strategic Advantage
More than 65% of chief executives now say that building and maintaining customer trust will have a greater impact on their organisation’s success than any single product or service feature. This shift highlights a growing recognition that customer loyalty is the most powerful differentiator in an increasingly competitive market.
Alongside this, 67% of executives call for greater budget flexibility to balance investment between ongoing operations and innovation. Being able to pivot resources quickly allows organisations to seize digital opportunities that fuel long-term growth.
“The traditional approach of executing tech transformations through rigid control processes, fixed cost, scope, and timelines has proven ineffective for technology projects in banks. You have to trust and empower smart individuals without knowing the full specification of what you’re going to get and in what time frame.” Sam Everington, Chief Executive, Engine by Starling
This mindset fosters an environment where innovation thrives and teams feel empowered to adapt swiftly.
AI as a Force for Creative Transformation
Artificial intelligence is no longer a distant concept but a central driver of business transformation. Sixty-eight percent of chief executives say AI is changing core aspects of their organisations, from products and services to fundamental business processes. This “creative destruction” is reshaping entire industries by enabling new value propositions and operational models.
“AI is evolving so quickly every day that we should ride this wave and move forward. AI reform is not just about one product, but about changing the business process itself and providing new product value to customers.” Miki Tsusaka, President, Microsoft Japan
Adoption of AI is accelerating rapidly. Sixty-one percent of executives report actively integrating AI agents and preparing for large-scale deployment. The competitive advantage increasingly hinges on who can harness generative AI most effectively.
As AI models become more affordable, organisations are finding innovative ways to use smaller, specialised models tailored to their specific data. This approach not only improves output quality but also reduces energy consumption and computing costs, enabling sustainable innovation.
“In tech, you either grow or you die. And to grow in our business, given the pace of change in the world, you have to innovate.” Tom Hogan, Chief Executive Officer, Cellebrite
Data Integration: The Foundation for AI Success
Although 72% of chief executives agree that proprietary data is vital for unlocking AI’s full potential, half admit that fragmented technology investments have led to disjointed systems. Sixty-eight percent stress the importance of integrated, enterprise-wide data architecture to facilitate collaboration and innovation.
“Data as a single source of truth that everybody can see has been transformational for partnerships. It not only eliminates challenges and disputes but also helps identify opportunities for improvement, including new services and new lines of business.” Tamara Vrooman, Chief Executive, Vancouver Airport Authority
Having a unified data foundation enables organisations to be agile, responsive, and innovative, providing a strong platform for future growth.
Investing in AI with Measurable Impact
Chief executives expect their AI investments to grow substantially. Forecasts for generative AI investment between 2025 and 2027 show a 31% increase, more than double the previous forecast period. Traditional AI investments are also rising at a similar rate.
Top-performing leaders anticipate AI will significantly improve productivity, growth, and decision-making. They are well ahead in integrating AI to accelerate efficiency and gain strategic insights.
Future-Proofing Talent Through Innovation
The workforce is evolving rapidly. Thirty-one percent of employees will need retraining or reskilling within the next three years. Meanwhile, 54% of organisations are hiring for roles linked to AI that didn’t exist a year ago. To address this talent challenge, many executives are adopting a “build, buy, bot, borrow” strategy, re-skilling existing employees, hiring new talent, deploying AI tools to augment workflows, and partnering with external experts.
Focus on ROI Drives Sustainable AI Growth
While AI adoption is widespread, only 25% of initiatives have delivered expected return on investment, and just 16% have scaled enterprise-wide over the past three years. This has sharpened the focus on measurable outcomes, with 65% of chief executives using ROI as a key driver for AI deployment, and 68% having clear metrics to evaluate innovation impact.
This data-driven approach is helping organisations move beyond pilots to scale AI projects that deliver real business value, particularly in IT and customer service. By 2026, 51% of executives expect AI-driven automation to enhance customer experience—a significant increase from just 16% in 2024.
The Traits of Tomorrow’s Leaders
Leaders of the most successful organisations share six defining qualities. They are connected, with highly integrated business functions; decisive, taking swift action in uncertain times; responsible, navigating AI regulations confidently; future-focused, budgeting strategically for emerging technologies; informed, understanding AI’s workforce impact; and unimpeded, rapidly adopting innovations.
These leaders’ organisations outperform their peers, with average annual revenue growth of 15% from 2021 to 2023 compared with 12% for others. They also expect to maintain a strong growth trajectory through 2027, demonstrating the power of these leadership mindsets in practice.
Charting the Future with Courage and Innovation
The research makes clear that the organisations best positioned for the future are those led by executives willing to embrace risk thoughtfully, adopt an AI-first mindset, and pursue holistic technology integration.
Rather than reacting to disruption, these leaders harness AI and data to forecast more accurately and act with greater confidence. By making courage their core and focusing on long-term value, they transform uncertainty into opportunity and lay the groundwork for sustained growth in an era of relentless change.