Leadership in the breach

CEOs’ broad-based caution in this moment is understandable. Consider that their top concern this year is supply chain resilience, which makes perfect sense: the combination of punitive tariffs and those seemingly intractable geopolitical conflicts is embattling not just people but also the flow of goods.

Cybersecurity concern remains in the top five, at number three—down from number two in 2024, having ceded some urgency this year to regulatory pressures, even as CEOs understand that cyber threats demand constant vigilance. Concerns about AI ethics, governance and integration round out the top five, all of that new this year.

This divergence isn’t just statistical, it’s strategic. CEOs are doubling down on operational efficiency, talent strategy and digital transformation. Meanwhile, AI has overtaken ESG as their top priority, with 73 per cent of CEOs planning to allocate 10-20 per cent of their budgets to AI initiatives.

This is a rational response to uncertainty. But it also signals that CEOs are continuing to invest despite uncertainty in pursuit of growth and market leadership.

To build and sustain momentum, CEOs must lead with conviction. That means:

• Investing in transformation even when the economy wavers.
• Operationalizing AI to drive productivity, resilience and innovation.
• Collaborating across sectors to build shared momentum.
• Communicating transparently to build trust and alignment.

It’s not about ignoring risk—it’s about navigating it with clarity and courage. It’s also an opportunity, one that coincides with a bold national initiative: the passage of Bill C-5, the One Canadian Economy Act, which marks a turning point in Canada’s infrastructure strategy. Among other things, the Act is an invitation for CEOs to align their individual ambitions with a national framework designed to accelerate growth, deepen trade relationships and create new Canadian prosperity.

The convergence of declining macroeconomic confidence and a national push for infrastructure transformation presents a unique leadership moment to lean into the opportunity to shape Canada’s future.

Our survey asked CEOs to identify the most essential leadership qualities needed to steer their organizations through geopolitical instability and lackluster economic growth. Canadian CEOs cited the “ability to lead transformation and culture change,” acting with “greater agility and faster decision-making under pressure,” “stronger strategic foresight and scenario planning capabilities,” and ensuring “AI understanding and literacy” among their employees.

Clearly, their eyes are wide open. So, what does fearless leadership mean in this context? It means:

• Championing productivity and innovation as strategic imperatives, not just operational goals.
• Exploring blended financing models that include Indigenous equity, public-private partnerships and federal support.
• Making cybersecurity a board-level priority, investing in both technology and talent to protect data, operations and reputation.
• Aligning M&A strategies with long-term value creation and risk management, ensuring every move supports sustainable growth.
• Balancing optimism with realism, stress-testing for macroeconomic shocks, inflation and supply chain volatility—even as we pursue robust and sustainable growth.

Canada is charting a path to build big, bold and fast. As business leaders, we need to match that ambition. We can’t wait for the economy to stabilize on its own; it’s up to us to stabilize it. That would be boldness and ambition to match the moment. That would be the leadership needed to rise to this historic occasion.

This is Canada’s moment. We can’t let it pass us by. Let’s lead with courage, invest with conviction and collaborate with purpose.

Let's be fearless.

About the KPMG CEO Outlook survey

The 11th edition of the KPMG CEO Outlook, conducted with 1,350 CEOs between August 5 and Sept. 10, 2025, provides unique insights into the mindset, strategies and planning tactics of CEOs. All respondents oversee companies with annual revenues over US$500 million and a third of the companies surveyed have more than US$10 billion in annual revenue. The survey included CEOs from 11 key markets (Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, UK and US) and 12 key industry sectors (asset management, automotive, banking, consumer and retail, energy, healthcare, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications).

About the Generative AI Business Adoption Survey

KPMG in Canada surveyed 753 business leaders between August 15 and Sept. 3, 2025, for their insights into AI adoption, integration, ROI, and employee training and literacy. The online survey was conducted over Sago’s Methodify research platform. Sixty-four per cent of respondents are from privately held organizations and 36 per cent are from publicly traded organizations. Thirty per cent reported annual revenue over $1 billion, 35 per cent between $500 million to $1 billion, 30 per cent between $100 million and $500 million, and 5 per cent between $50 million and $100 million.