PwC: 37% of Asia Pacific CEOs plan to expand beyond their traditional industry boundaries, AI emerges as a key differentiator

Beijing, 20 January 2026–Asia Pacific CEOs are stepping up business reinvention ambitions, even as near-term pressures test resilience, according to PwC’s 29th Global CEO Survey–Asia Pacific. The survey is based on responses from 4,454 CEOs globally, including 1,766 from Asia Pacific.

More than a third (37%) plan to expand beyond their traditional industry boundaries over the next three years, signaling a growing appetite to pursue new sources of growth despite a more complex risk environment. They will target adjacent and fast-moving sectors, including technology, health services, asset and wealth management, transportation and logistics, retail, and industrial manufacturing.

CEOs who have already moved into new sectors are seeing tangible returns. More than half (52%) report that over 10% of their revenue in the past five years came from competing in new sectors.

Artificial intelligence is delivering, but not uniformly

Asia Pacific CEOs are seeing value from AI. Nearly four in ten (39%) report that AI has driven additional revenues over the past 12 months, ahead of global peers (30%). And 26% are also seeing tangible cost reductions. Some are achieving both at the same time (15%). They are turning AI into a true performance lever, using it to grow revenues while lowering costs.

Mohamed Kande, PwC Global Chairman, said: “2026 is shaping up as a decisive year for AI. A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots. That gap is starting to show up in confidence and competitiveness–and it will widen quickly for those that don’t act.”

The foundations of AI are taking shape, but they’re uneven. Only 26% of organisations report strong AI foundations across at least six of seven core areas, including culture, technology environment, strategy/AI roadmap, Responsible AI, talent, investment, and data. Our survey also found that organisations with stronger AI foundations are twice as likely to see revenue increases and cost reductions from AI.

Hemione Hudson, Chair and CEO of PwC China, said: “AI is no longer just a technological tool; it has become essential infrastructure for companies to build future competitiveness. We have supported many Chinese clients on their AI transformation journeys, witnessing their transition from exploration to value realisation. According to the survey, 17% of Chinese Mainland CEOs have already achieved both cost reduction and revenue growth by using AI, which is ahead of the global average. This practical experience creates replicable pathways for local businesses, and demonstrates the capability of Chinese AI to the rest of the world.”

CEO confidence wanes over risks and immediate challenges

At the same time, confidence for the near term is softening. While 59% of Asia Pacific CEOs expect global economic conditions to improve over the next 12 months, confidence in their own short-term revenue growth has eased. Just 21% now say they are very or extremely confident about revenue prospects for the year ahead, down from 34% in 2025 and below global peers (30%).

What explains this ebbing confidence? CEOs report rising exposure across the risk landscape, especially that of cyber threats. Asia Pacific is the only region in the global survey where cyber clearly surpasses all other risks, including economic pressures. Notably, tariffs are not biting as hard as some might expect–less than a quarter (24%) of CEOs feel very exposed. 51% expect tariffs to have little to no impact on their company’s net profit margin over the next 12 months.

Our survey found that, while Asia Pacific CEOs are most concerned about long-term issues such as business transformation and business viability, short-term issues dominate their schedules: 79% of CEO schedules focus on short-to medium-term priorities (0–5 years). It raises a clear question about how much capacity remains for the long-term transformation they know is critical.

Mohamed Kande, PwC Global Chairman, added:

“In periods of rapid change, the instinct to slow down is understandable–but it’s also risky. The value at stake across the global economy is increasing, and the window to capture it is narrowing. The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most.”

Notes to Editors

About the survey

We surveyed 4,454 CEOs in 95 countries and territories from 30 September through 10 November 2025. The global and regional figures in this report are weighted proportionally to country nominal GDP, so CEOs’ views are broadly representative across all major regions. The industry-and country-level figures are based on unweighted data from the full sample of 4,454 CEOs. To learn more about the findings, please visit: https://www.pwc.com/gx/en/about/pwc-asia-pacific/ceo-survey.html.