5 dynamics that will shape the CEO agenda in 2025

CEOs have an increasingly tough job in world where disruption, conflict, and uncertainty are commonplace. Image: Getty Images/iStockphoto.
- Navigating the role of CEO demands a deep level of insight in order to make sense of the world, solve challenges, and excel.
- Research from BCG has identified five dynamics that will likely define the CEO agenda in 2025.
- From adapting to geopolitical risk, to AI transformation, to ultimately acting as a “Unifier in Chief” – CEOs have a tough job.
While the saying, “May you live in interesting times”, is considered a curse, for CEOs, it can be a blessing. Because those who navigate challenging conditions adeptly and find opportunities within them can build something greater for their shareholders, employees, and broader society.
Five dynamics for CEOs in 2025
Through our research and conversations with over a thousand CEOs across industries and regions in recent months, we believe leaders have every reason to embrace the future with “concerned optimism”. To help them chart that course, we’ve landed on the following five dynamics that will shape the CEO agenda in 2025.
1. Tariffs, global competitiveness and the rise of the Global South
Whatever happens with tariffs in 2025, CEOs who invest in capabilities to understand how their supply chains and production costs could be impacted under different trade scenarios are more likely to proactively mitigate risks, make more informed capital allocation decisions, and capture burgeoning opportunities before their competitors.
Consider, for example, how tariff rates discussed by US President-elect Donald Trump could alter trade flows. Under a baseline scenario that assumes no new tariffs, BCG estimates the value of annual US-China trade would contract by $159 billion by 2033. But an extreme scenario in which the US imposes 60% tariffs on all goods imported from China and 20% on imports from the rest of the world would see US-China trade contract by a further 27%.
These tariff dynamics are likely to continue opening new opportunities in the Global South. This group of 133 nations (not including China) want to do business with everyone across geopolitical lines, leaving them well positioned to benefit from global trade shifts.
Business leaders globally expect trade and other policy shifts under the incoming Trump administration to supercharge the US economy. This raises the stakes, especially for Europe-headquartered CEOs, to boost competitiveness over the next decade as they decide on how to allocate investments between the continent and other parts of the globe and as they develop the most competitively advantaged elements of their businesses further.
2. Crunch time for scaling AI/GenAI
Some 75% of executives we surveyed rank AI/GenAI as a top three strategic priority for this year. But only 25% are seeing significant value from these investments.
In our experience, successful AI transformations happen when the CEO becomes personally involved, because only the CEO can truly align the company’s AI agenda with the enterprise agenda. They can ruthlessly prioritize efforts, focusing on a few key areas (rather than hundreds of use cases), and carving out meaningful resources to drive and scale them.
CEOs can also lead the cultural and organizational change to make these efforts successful. This includes using AI themselves to understand how the technology works and defining a robust learning agenda (and sources) for themselves.
3. The rising cost of climate inaction
Climate policy may be country-specific, and shareholder pressure on climate action may ebb and flow, but severe climate events – and the costs they inflict on businesses, economies, and societies – are borderless.
In our work with the World Economic Forum, we estimate that if climate change goes unchecked, the physical risks extreme weather poses to companies could place 5% to 25% of their EBITDA at risk over the next two decades. We also found that companies are likely underestimating the financial impact of physical climate risks (see Figure 1 below). Meanwhile, carbon pricing and stricter regulations in some regions can challenge asset values and undermine market position in high-emissions sectors.
The potential financial toll of physical and transition risks makes a clear case for CEOs to invest in adaptation and resilience measures, which companies anticipate will return from $2 to $19 for every dollar committed.

4. Powering growth with enduring cost management
A third of executives we surveyed listed cost reduction as their most critical priority for 2025. Some 40% feel unprepared for potential market shocks, while North American and European executives are increasingly worried about how interest rates, inflation and potential tariff and regulatory changes will impact margins and profitability.
Controlling costs is critical for future competitiveness. Some 67% of executives we surveyed say they need to consistently reinvest a portion of their cost savings into innovation and growth. Yet, on average, companies hit only 48% of their cost savings targets, while half of them fail to achieve enduring structural cost cutting.
The problem often lies in how CEOs approach the cost management challenge. Piecemeal belt-tightening can produce a sudden windfall of savings, but like a crash diet, the effects will likely prove fleeting. By contrast, by communicating a clear perspective on where and how cost savings will be reinvested in growth and innovation, CEOs can mobilize the entire enterprise around cost efficiency to achieve more enduring, sustainable results.
5. Wanted (and needed): a “Unifier in Chief”
Given the widening political and social divisions within and between nations, there has arguably never been a greater need – or a greater opportunity – for CEOs to become the “Unifier in Chief” of their workforce.
CEOs can lean in by rallying their workforce around the purpose of the company and helping employees feel that they are part of something bigger than themselves – a collective force of like-minded individuals working together peacefully in the service of a higher goal.
When CEOs ensure their workplace is a refuge from the conflicts of the outside world – a place where values are upheld and where people listen to each other respectfully – it creates a truly inclusive environment. We know that bridging workforce divisions is an essential driver of company performance. Our research finds that employees who feel highly included at work are 42 percentage points more likely to feel motivated. They also have lower levels of burnout.
Leading organizations during tough times
These five dynamics are not exhaustive. CEOs will have to navigate industry-and-country-specific forces as well, making what has arguably become a much tougher job even harder. But they should not fear the future. Because leading during interesting times is first and foremost, a privilege – to shape a company, an industry, and the world we leave to future generations.
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