Asia-Pacific & AI drive bullish CEO outlook for 2026

Asia-Pacific has emerged as a top priority for global chief executives and institutional investors, who expect stronger economic conditions, rising deal activity and increased artificial intelligence spending heading into 2026, according to new research from advisory firm Teneo.

The study captures the views of more than 350 public company CEOs worldwide and 400 institutional investors. The respondents represent more than AUD $28.5 trillion in company and portfolio value.

APAC stands out as a focus area within that global outlook. Teneo said 82% of surveyed CEOs see the region as an attractive investment opportunity for their business in 2026. APAC-based leaders also report higher optimism on deal activity than peers in other regions.

The research shows a broadly positive macroeconomic view. Overall, 73% of CEOs and 82% of investors expect the global economy to improve in 2026. The level is slightly lower than expectations for 2025 but remains high by historical standards.

Confidence is not uniform across company size. The proportion of large-cap CEOs projecting growth has fallen by 20 percentage points year-on-year. Teneo links this shift to concerns over global trade, geopolitics and technological disruption. Mid-cap CEOs and investors retain a more bullish stance on growth.

The survey also confirms the continued dominance of the United States in corporate planning. Respondents identify the US as the most attractive market in the world for investment.

"Following record CEO and investor confidence in the wake of the U.S. elections last year, we continue to see optimism for 2026 with most expecting at least a short-term increase in hiring as well as increased M&A activity and international and domestic investment," said Paul Keary, CEO, Teneo. "The U.S. remains the most attractive market in the world for investment, with policies - such as those around technological advancement and regulatory streamlining - creating a pro-growth environment. Companies have also become more resilient to disruption over the last few years, helping to underpin their confidence."

M&A sentiment is particularly strong. Three out of four CEOs and investors expect more deal activity in 2026. This proportion rises to 78% among CEOs globally. Healthcare and resources CEOs are the most optimistic on transactions, followed by leaders in industrials and technology. Respondents most often cite high capital costs as the main barrier to getting deals done.

Investors remain positive on market conditions. Teneo reports that 41% are very optimistic about access to equity funding. A similar proportion feel very optimistic about access to debt markets, and 45% are very optimistic about the affordability of debt.

APAC focus

Within Asia-Pacific, the survey points to a nuanced view of global trade shifts. APAC respondents see deglobalisation progressing, but at a slightly slower pace than the global average. Some 55% in the region expect deglobalisation to accelerate, compared with 60% of CEOs worldwide.

Executives continue to see China as central to global corporate strategy. Respondents highlight China's market size, its manufacturing base and supply chain strength. They also point to the country's position in technology and innovation. Teneo said CEOs and investors rank China as an extremely important priority today and over the next five years.

At the same time, sentiment towards India is changing. CEOs believe India will surpass China in strategic importance within 10 years. They view India as a long-term demand engine and a key source of talent. Respondents link this view to expectations for market growth and innovation in India and its potential impact on global competitiveness.

Geopolitics, technology and supply chain issues remain recurring concerns. CEOs and investors split evenly on whether the current geopolitical environment is temporary or marks the start of a more permanent reordering.

AI spending and returns

The research positions AI as the fastest-growing investment area in 2026. Some 68% of CEOs plan to increase AI spending. Teneo reports that 88% of CEOs and 84% of investors believe AI is helping businesses manage disruption.

There is a notable gap between expectations on AI returns. A majority of large-cap CEOs, 84%, predict that new AI initiatives will take longer than six months to achieve a return on investment. By contrast, 53% of investors expect ROI within six months or less.

Fewer than half of current AI projects are ROI-positive. Respondents still report gains from AI in internal efficiency, administrative tasks and customer-facing applications. They see the most success in marketing and customer service. They identify security, legal and HR applications as both high-potential and high-risk areas, with greater complexity.

"AI spending is set to rise again in 2026, with 68% of CEOs planning to increase their investment," said Ursula Burns, Chairwoman, Teneo. "Along with that investment, an increase in new skilled hires across all seniority levels will help deliver on corporate AI ambitions. Investors, however, are becoming increasingly impatient for ROI on these AI investments, creating a tension that will be important to watch in the year ahead."

Workforce reshaped

The survey suggests AI will expand, rather than shrink, headcount in the near term. Most CEOs expect AI initiatives to drive hiring in 2026. Some 67% forecast an increase in entry-level roles and 58% expect growth in senior leadership positions.

Companies are reorganising their workforces around AI projects. CEOs say they are prioritising AI augmentation of roles and upskilling. Half of CEOs choose augmentation as a key focus in 2026. A further 46% highlight talent upskilling.

Respondents describe AI, innovation and agility as essential skills for the next generation of corporate leaders. They also emphasise human attributes. Creativity ranks as the most important ability that CEOs want from their executive team.

The survey covers public companies with at least USD $1 billion in annual revenue and a global set of professional investors in banking, asset management, private equity, venture investing and hedge funds. Teneo said it will track how CEO and investor attitudes on AI, geopolitics and regional priorities such as APAC and India evolve as 2026 approaches.