Global CEO confidence hits five-year low as AI returns lag – but Maltese leaders signal resilience

Only 30 per cent of CEOs worldwide are confident about revenue growth over the next 12 months – the lowest level recorded in five years – according to PwC’s 29th Global CEO Survey. The decline reflects mounting frustration over the difficulty of extracting financial returns from AI investments, alongside rising cyber threats, geopolitical tensions and exposure to tariffs.

Yet, in sharp contrast, Malta’s latest CEO Confidence Tracker paints a far more resilient picture. Locally, 69 per cent of CEOs reported stronger performance in Q3 2025 compared to the previous quarter, while 92 per cent expect economic conditions to remain stable or improve in the coming months.

The divergence reveals a striking narrative: While global leaders are grappling with uncertainty and questioning whether they are transforming fast enough, Maltese CEOs appear to be benefiting from strong domestic drivers and sectoral stability.

The defining divide between pilots and performers

Globally, AI has become the central question in the boardroom. When asked what concerns them most, 42 per cent of CEOs said they worry whether their organisations are transforming fast enough to keep up with technological change, including AI – ranking above concerns about innovation capability or long-term viability (both 29 per cent).

Despite the hype, most organisations are not yet seeing tangible financial returns. PwC’s data shows that 56 per cent of CEOs say their companies have realised neither revenue gains nor cost savings from AI over the past year. Only 12 per cent report achieving both.

The survey highlights a widening gap between companies running isolated AI pilots and those embedding AI at enterprise scale. CEOs reporting both cost and revenue gains are two to three times more likely to have integrated AI extensively into products and services, demand generation and strategic decision-making.

This suggests the issue is not AI itself, but the lack of foundational structures, integration and cultural adoption required to turn experimentation into value.

Cyber risk and geopolitics weigh heavily on confidence

At the same time, CEOs’ threat perceptions have intensified. Global concern about cyber risk has risen sharply, with 31 per cent now citing it as a major threat, up from 24 per cent last year and 21 per cent two years ago. In response, 84 per cent say they plan to strengthen enterprise-wide cybersecurity as part of their response to geopolitical risk.

Tariffs and trade tensions are also dampening confidence. One in five CEOs globally report being at high or extreme risk of significant financial loss from tariffs over the next 12 months, with 29 per cent expecting margin compression as a result.

Faced with this backdrop, a third of CEOs say geopolitical uncertainty is making them less inclined to pursue major new investments.

Despite lower confidence, CEOs are not standing still. More than four in ten (42 per cent) say their companies have started competing in new sectors over the past five years. Among those planning major acquisitions, 44 per cent expect to invest outside their current industry, most often in technology.

A little over half (51 per cent) plan international investments in the year ahead. The United States remains the top destination (35 per cent), followed by the UK and Germany (both 13 per cent). Notably, India has risen sharply in interest, now cited by 13 per cent of CEOs compared to 7 per cent last year.

PwC’s analysis shows that companies generating a higher share of revenue from new sectors are more profitable and have more confident CEOs. Dynamism, the data suggests, is outperforming caution.

Malta’s different reality

Against this global uncertainty, Malta’s CEO sentiment appears unusually steady.

According to the local CEO Confidence Tracker, business performance remains strong, with 69 per cent of CEOs reporting improved results in the last quarter and only 15 per cent reporting a decline. This aligns with national economic indicators pointing to steady activity across key sectors.

Looking ahead, 92 per cent of Maltese CEOs expect economic conditions to remain stable or improve over the next six months. This optimism is underpinned by continued GDP growth, low unemployment, and the performance of domestic drivers such as property, tourism and the services sector.

While global CEOs are wrestling with AI monetisation challenges, cyber threats and tariff exposure, Maltese CEOs appear to be operating within a more stable economic environment where local demand and sector resilience are cushioning global headwinds.

PwC’s findings suggest that the real divide is not between optimistic and pessimistic CEOs, but between those moving fast enough to reinvent their organisations and those hesitating amid uncertainty.

Globally, cautious companies – those delaying investments due to geopolitical risk – are growing more slowly and achieving lower profit margins than their more dynamic peers.

For Maltese CEOs, the challenge may not be surviving volatility, but ensuring they do not become complacent in a relatively favourable environment. As global competitors accelerate AI adoption, cross-sector expansion and international investment, the question is whether Malta’s resilience today could mask the need for faster transformation tomorrow.