In 2025, corporate boardrooms across Germany are confronting a complex environment of flat growth, increasing geopolitical and regulatory headwinds, and pressing needs to future‑proof established models. For many of the country’s top executives, that’s triggered a clear shift-from cautious incremental change to bold repositioning, with AI and acquisition-driven expansion taking center-stage.
Yet, according to the latest KPMG CEO Outlook survey of large‑scale companies in Germany, only 72 % of German CEOs still anticipate growth of their firms over the next three years, compared to 77 % in 2024 and even 90 % in 2022.
That loss of confidence also reflects expectations for the wider economy: only 64 % of executives show confidence in the global economic trajectory, while 75 % are confident about Germany’s own economic outlook over the coming three years.
Faced with this backdrop, German CEOs are not standing still. Instead, they are actively recalibrating strategy – and the numbers tell the story. No less than 82 % of the companies surveyed say they have already adjusted or will adjust their growth strategy, while for 58 % of them, major take‑overs are likely in the near term.
AI is emerging as the key lever
Gone are the days when digitalisation and process improvement dominated boardroom agendas; AI now is elevated as a top‑tier priority. The KPMG report shows that 68 % of German CEOs cite AI as their top investment target. But even more telling: 80 % of them want to invest at least 10 % of their budget in generative AI over the next 12 months.
The survey highlights how executives view AI not just as a cost‑cutting tool, but as a vehicle for strategic repositioning. Some 18 % identify “better decisions and data‑analysis leading to higher profitability” as the primary benefit, while 47 % say they will invest significantly in workforce training in response.
What’s driving this push?
Driving the shift are several intertwined drivers:
Growth fatigue: Germany’s legacy manufacturing base, export dependency, and cost structure are under increasing pressure, which implies slower organic expansion.
Strategic urgency: Constrained headroom for growth means companies are looking for new performance lifts either outward through M&A or inward using disruptive technologies.
AI promise: The combination of generative AI, advanced analytics, and automation has huge potential to drive cost efficiencies, better decisions, and new business models.
Regulatory and competitive pressures: Germany and Europe are faced by enhanced competition from the U.S. and China in tech and digital innovation, so the firms feel a need to accelerate or risk falling behind.
Moreover, though the volume of investments in AI is increasing, implementation remains a challenge. The survey shows that 76 % of German CEOs believe integrating AI into their business processes is a fundamental challenge, 72 % mention workforce training as critical, and 77 % point to cyber‑security concerns as the main priority.
What this means for companies and stakeholders
For German businesses, such a pivot means several things:
Budget reallocation: Boards will increasingly ring‑fence funds for AI, analytics and transformation rather than traditional CAPEX.
M&A activity: With 58 % of CEOs seeing take‑overs as likely, cross‑border deals and strategic acquisitions will increase-especially among firms seeking access to data-science capabilities or new markets.
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Workforce transformation: Training, re‑skilling, and new role design will become core to AI rollout; nearly three‑quarters of firms say they will redesign career paths in the medium term.
E3-Magazin Governance and ethics spotlight: Data quality, ethical use of AI and regulatory clarity rank high on the agenda — 70 % of respondents cited slow regulation as a barrier. E3-Magazin Implications for your PR/communications strategy From a PR perspective, the repositioning of German firms offers several story‑lines: Supporting clients who are AI-enabling German firms, or supporting German multinational clients in India, could emphasize “German boardroom embraces AI for growth” narratives.
Framing the strategy around transformation and away from slow organic growth can be effective in presenting key executives as forward-looking and action-oriented. Showing workforce investment, ethics, and governance around AI will strengthen reputation and build trust where scepticism is still high. Conclusion While the economic mood among German CEOs may have dimmed, the response has been far from passive. Rather than retreat, companies are proactively shifting strategy-investing heavily in AI, preparing for acquisition-driven growth, and reimagining talent and governance frameworks. For PR practitioners, this is a rich moment to engage with clients around transformation narratives, leadership in digitalization, and cross-border expansion. As one German CEO quoted in the survey put it: “We are not remaining passive, but are actively shaping the transformation.”
