As a response to increasing economic and geopolitical pressures, 82% of German CEOs have adjusted their growth plans, with heavy focus placed on investments in artificial intelligence (AI) and significant acquisitions. This strategic shift, noted in the 2025 KPMG CEO Outlook, marks a forward-thinking approach to gaining long-term competitiveness and resilience.

Slowing Confidence Despite Global Uncertainty

Confidence among German CEOs has faded in recent years. Just 72% predict company growth over the next three years, down from 90% in 2022. This gloominess is reflected in general views on the economy; only 64% of German CEOs are confident in the direction of the global economy.

AI has become a pillar of German business strategy. An impressive 68% of CEOs are naming AI as their number one investment priority, with 80% spending at least 10% of their budgets on AI projects in the near term. The upside they expect is well worth it: 18% predict improved decision-making and analysis of data, and 30% recognize the difficulty of finding qualified AI talent.

This AI-driven approach is as much about adopting technology as it is about transforming staff. 86% of German CEOs intend to increase their staff in the next three years, with 40% anticipating a rise above 5%. This growth is directly related to the adoption of AI, as businesses want to develop the skills and abilities required to use such technologies effectively.

Strategic Acquisitions to Drive Growth

In addition, 58% of German CEOs see major acquisitions as a probable source of growth, a substantial rise from 40% last year. It is a reflection of a strategic move to strengthen capabilities, expand into new markets, and get access to AI capabilities via targeted mergers and acquisitions.

Overcoming Digital Transformation Challenges

Despite the German chiefs’ enthusiasm regarding AI, there are various challenges acknowledged by them. Cybersecurity issues top the list, with 77% mentioning cybercrime and insecurity as key challenges. Next, 76% stress the necessity of effective integration of AI into business operations, and 72% stress the significance of employee training in AI skills.

A Proactive Approach to Economic Pressures

The strategic changes are part of an overall trend among CEOs worldwide to bet big on AI and talent spending in the face of economic uncertainties. Confidence in the global economy has dropped to its lowest level since 2021, yet 92% of world CEOs intend to add headcount in the next 12 months, and 89% expect merger or acquisition activity.

Conclusion

German CEOs are shaping a complex reality by adopting AI and strategic acquisitions as key drivers of their growth plans. This anticipatory strategy seeks to drive efficiency, innovation, and position companies for long-term success in an increasingly complex global marketplace.