A recent study conducted by KPMG found that 80% of private company CEOs are confident about their company’s growth prospects with an investment in AI. However, 38% of the CEOs marked that the future-skills gap between generations is one of the biggest barriers.
The study titled KPMG 2025 Global Private Company CEO Outlook found that 71% of private enterprise CEOs say AI is a top investment priority, of whom 66% plan to allocate 10–20% of their budgets to AI initiatives in the coming year.
Further, 75% of the private company CEOs expect returns from AI investments in 1–3 years, compared to 65% of peers in publicly listed companies.
While 85% show an appetite for M&A, private company CEOs are less likely to pursue ‘high-impact’ (transformative) deals compared to previous years and their public company peers (30% vs. 45% in 2024). This suggests a trend toward moderate deals and organic expansion.
Findings suggest that the most impacting future prosperity is around cybersecurity (81% agree/strongly agree), cost of technology infrastructure (79% agree/strongly agree), and AI workforce readiness (77% agree/strongly agree).
However, some of the key barriers listed by the respondents are:
- Ethical concerns (61% cite as a barrier), including bias, privacy, and lack of transparency.
- Data readiness (the second biggest challenge).
- Regulatory inertia, with 73% indicating that slow-moving regulations are obstructing their ability to deploy AI.
Commenting on the Indian perspective, Akhilesh Tuteja, Partner & National Leader, Clients and Markets, KPMG India, said, “Private company CEOs are proving that resilience and foresight are critical in today’s volatile landscape. Instead of reacting to disruption, they are actively redefining their business models. The findings highlight that these leaders see technology and innovation, particularly AI as central to driving sustainable growth. Their confidence positions private enterprises at the forefront of adaptability and long-term value creation.”
