A majority of CEOs and investors expect the global economy to improve next year and that AI efforts will lead to job growth. Teneo I found it.
According to the advisory firm's 2026 Global CEO and Investor Outlook report, 73% of CEOs and 82% of investors expect the global economy to improve in 2026, compared to 77% and 86% in 2025.
However, reflecting the realities of the global business environment, confidence among large-cap CEOs is down 20 percentage points year-over-year, as concerns about global trade, geopolitical uncertainty, and technological disruption dampen expectations.
Meanwhile, mid-cap CEOs and investors remain overwhelmingly positive about growth prospects.
Respondents predict that the industry's AI efforts will drive hiring as companies look to reshape their workforces to accelerate return on investment (ROI).
Two-thirds (67%) of CEOs foresee an increase in entry-level headcount, and 58% believe senior executive hiring will increase.
CEOs are prioritizing AI enhancement (50%) and talent upskilling (46%) in 2026, reflecting a dual strategic focus on automation and human capabilities.
Furthermore, 78% of CEOs expect M&A activity to increase in the coming year.
CEOs representing the healthcare and resources industries are the most optimistic about the outlook for M&A, followed closely by those in the industrial and technology industries.
More than 350 CEOs and 400 institutional investors from publicly traded companies with $19 trillion in enterprise and portfolio value responded to our annual survey.
“Following record levels of CEO and investor confidence following last year's US elections, there remains much optimism for 2026, with many expecting employment growth, at least in the short term, as well as increased M&A activity and domestic and international investment,” he said. Paul KeeleyRepresentative director of Teneo.
“The United States remains the world's most attractive market for investment, with advances in technology and policies such as regulatory streamlining creating a pro-growth environment. Businesses have also become more resilient to disruption in recent years, supporting confidence.”
“Spending on AI is expected to rise again in 2026, with 68% of CEOs planning to increase investment.” ursula burnsChairman Teneo.
“That investment, plus the increase in skilled new hires at all seniority levels, will help companies realize their AI ambitions. But investors are becoming increasingly impatient with the ROI on these AI investments, creating tensions that will be important to watch over the coming year.”
Confidence from investors regarding growth prospects is immense, with two in five saying they are very optimistic about access to equity market funding (41%), debt affordability (45%) and access to debt markets (41%).
More than 80% of both CEOs and investors say recent policy changes related to technological advances and regulatory streamlining have helped their businesses.
According to the survey, 60% of CEOs and 57% of investors agree that deglobalization will accelerate in 2026, with respondents increasingly believing that India will overtake China in terms of strategic importance over the next decade.
China's market size, manufacturing and supply chain strength, and technology and innovation leadership will continue to make it a critical priority for CEOs and investors alike, now and over the next five years.
However, India's status as a demand engine and talent powerhouse will accelerate the country's growth, and market growth and innovation will drive global competitiveness in the long term.
CEOs and investors are divided on whether today's geopolitical situation is a singular, temporary phenomenon that can be dealt with, or the beginning of a long-term reordering of the status quo.
Geopolitics, along with technology and supply chains, remains a top concern for global CEOs and investors as they prepare for continued disruption in 2026.
AI is the fastest growing investment area in 2026, with 68% of CEOs planning to increase spending.
Approximately 88% of CEOs and 84% of investors believe that AI is helping them reduce disruption or navigate their business better. Similarly, 84% of large-cap CEOs expect it will take more than six months to achieve ROI on new AI initiatives, while 53% of investors expect ROI to be achieved within six months.
While less than half of AI projects currently have a positive return on investment, the study found that benefits are being realized across internal efficiency, management applications, and customer-facing applications.
Both CEOs and investors have had the most success in marketing and customer service, but the applications that pose the greatest potential risk and complexity (security, legal, human resources) remain the biggest challenges.
An overwhelming majority of CEOs cite AI, innovation, and agility as critical skill sets for the next generation of CEOs.
Creativity is cited as the most important competency that leaders need in their executive teams, highlighting that the future of leadership does not depend solely on technology maturity and skills.
“As global CEOs and investors grow optimistic about 2026, Irish leaders need to prepare for the opportunities and competitive pressures ahead,” he said. mick o'keefeCEO of Teneo Ireland.
“With the US remaining the world's most attractive investment market and AI spending accelerating, companies here need to scale their ambitions, realign their talent and increase the pace of revenue growth. The increased appetite for M&A also further highlights that Irish companies also need to think globally to stay ahead.”
(Photo: Getty Images)
