Asia-Pacific CEOs are stepping up business reinvention ambitions, even as near-term pressures test resilience, according to a recent survey.

More than a third ( 37% ) plan to expand beyond their traditional industry boundaries over the next three years, signalling a growing appetite to pursue new sources of growth despite a more complex risk environment, finds the PwC’s 29th Global CEO Survey–Asia Pacific, which is based on responses from 4,454 CEOs globally, including 1,766 from Asia-Pacific.

Notably, the CEOs, the survey reveals, 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, the survey notes, 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.

AI delivering, but not uniformly

Asia-Pacific CEOs are seeing value from artificial intelligence ( AI ). Nearly four in 10 ( 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, the survey shares, using it to grow revenues while lowering costs.

“2026 is shaping up as a decisive year for AI,” says Mohamed Kande, PwC’s global chair. “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, the survey states, but they’re uneven. Only 26% of organizations 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.

Organizations with stronger AI foundations, the survey points out, are twice as likely to see revenue increases and cost reductions from AI.

“AI is no longer just a technological tool; it has become essential infrastructure for companies to build future competitiveness,” states Hemione Hudson, PwC China’s chair and CEO. “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.”

Confidence wanes over risks, challenges

At the same time, confidence for the near term, the survey finds, is softening. While 59% of Asia Pacific CEOs expect global economic conditions to improve over the next 12 months, the survey points out, 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% ).

The reason for this ebbing confidence, CEOs reveal, is 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, with less than a quarter ( 24% ) of CEOs feeling very exposed, while 51% expect tariffs to have little to no impact on their company’s net profit margin over the next 12 months.

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

“In periods of rapid change, the instinct to slow down is understandable – but it’s also risky,” Kande adds. “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.”