Global corporate leadership is reported to currently operate under heightened caution, shaped by ongoing geopolitical tensions and economic unpredictability.

As a result, corporate leaders are increasingly turning to artificial intelligence (AI) and talent development as critical drivers of resilience and growth. Despite newfound optimism, CEOs’ confidence was balanced by realism. CEOs across Africa continued to navigate a demanding landscape shaped by three pressing challenges: integrating AI into core operations (32 percent), managing regulatory pressures (25 percent), and strengthening cybersecurity (24 percent).

KPMG 2025 Africa CEO Outlook survey reveals that AI remains the leading strategic priority for global executives heading into 2026. For African CEOs, this focus reflects a significant shift in mindset. AI is no longer viewed solely as a future growth enabler but as a present tool for operational efficiency, informed decision-making, and long-term organizational resilience.

The survey reveals that African CEOs have sought to mitigate pressing business risks by increasing investment in cybersecurity and digital risk resilience, integrating AI into operations and workflows, and investing in solutions and technology innovation for business expansion. These CEOs see workforce AI skills and upskilling, digital security and cybercrime, the rising cost of technology infrastructure, and the integration of AI into operations as the most important factors for future organizational success.

They acknowledge that the integration of AI will impact their workforce, including skills expectations at the recruitment level, and to some extent, their company culture (56 percent). Subsequently, 65 percent of African CEOs note that integration of AI has made them rethink the skills required for entry-level. Across Africa, CEOs are placing talent at the core of their AI strategies. A significant 81 percent believe that upskilling their workforce in AI will directly impact their organization’s success over the next three years, compared to 77 percent globally.

At the same time, only 64 percent of African CEOs are concerned that competition for AI Talent will negatively affect their business, in contrast to 70 percent of global CEOs. This indicates that African CEOs prioritize nurturing AI talent from within their organizations and are investing in long-term skill development rather than relying on rapid external recruitment.

However, the path forward is not without challenges. Persistent infrastructure limitations such as unreliable electricity, limited broadband access, and outdated computing systems continue to impede the deployment of advanced AI systems across the continent. Necessary elements like GPUs, edge devices, and secure cloud solutions remain costly, especially for smaller enterprises.

Despite these constraints, African firms are moving forward strategically. The survey indicates that 34 percent of Africa’s CEOs are investing in technology and solution innovation—surpassing the 26 percent reported among their global counterparts. Rather than waiting for perfect conditions, organizations are prioritizing practical, scalable technologies that lay the foundation for broader AI readiness.

Another critical factor in AI adoption is the quality and relevance of training data. Much of the data used to build today’s leading AI models is sourced from Western regions, where digital behavior, linguistic patterns, and socioeconomic realities differ sharply from those in African contexts. As a result, AI systems trained on these datasets often struggle with accuracy and cultural alignment when applied locally, misidentifying faces, misinterpreting intent, or producing outputs that reflect external social norms.

Addressing this requires investment in the curation of local data, improved labeling practices, and collaborative open-data initiatives among governments, research institutions, and industry players. The most significant barrier to AI-driven growth, however, remains talent. Globally, 32 percent of CEOs express concern about bridging the skills gap required for successful AI deployment.

In Africa, talent competition is particularly intense, with local organizations contending against global technology companies that offer higher compensation and broader opportunities. Despite these challenges, AI adoption is creating more opportunities than threats, particularly in areas of workforce transformation and technical specialization.

As organizations increasingly deploy AI systems that interact with sensitive information, the need for strong cybersecurity measures becomes more pressing. The boundaries between data privacy, model integrity, and cybersecurity are becoming more intertwined.

Trust in AI cannot rest solely on technological performance; it must be grounded in transparency, security, and responsible governance. For African firms advancing digital transformation, integrating trusted AI principles into cybersecurity frameworks will be vital to maintaining operational confidence and safeguarding innovation.