Most chief executive officers around the world are planning to expand their headcount in the next year, with artificial intelligence being a key factor in hiring plans, according to a new report from KPMG.

Its 2025 Global CEO Outlook found that 92% of chief executives plan to increase headcount in the next 12 months.

The findings indicate cautious optimism, according to KPMG, as the share of CEOs confident in the current trajectory of the world economy declined to 68%, down from 72% in the previous year.

The majority of CEOs (88%) also noted that an ageing workforce has a moderate to high impact on recruitment, retention, and culture.

According to the report, 30% of CEOs are observing a growing generational gap on key future skills, while 24% are worried about the number of employees retiring without enough skilled workers to replace them.

"Ultimately, the leaders who can embrace market volatility and focus investments in the right strategic areas for their organisation will be the ones best placed to unlock new opportunities and build sustainable, long-term growth," said Bill Thomas, KPMG's global chairman and CEO, in a statement.

AI a factor in talent investment

The growing integration of artificial intelligence tools in workplaces is also a key factor in many organisations' plans for their workforce, according to the report.

More than six in ten (61%) employers said they are planning to hire new talent with AI and tech capabilities. It comes as 70% of leaders recognised that competition for AI talent could slow down success.

Sandy Torchia, KPMG International's Global Co-head of People, said having a rounded and people-centred employee value proposition was key.

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