Geopolitical Tensions: Key Challenges for CEOs in 2025

As 2025 unfolds, global CEOs are focusing on navigating the escalating trade wars and tensions between major economies, according to a new survey from The Conference Board. The survey found that the strained relations between the United States, the European Union, and China are some of the greatest threats to business operations in 2025.

“2025 brings significant challenges: an economy projected to grow at a slower pace (1.0%, according to estimates), inflation still above ideal levels, and an international environment that demands constant vigilance,” says Manolo Atala, CEO and Co-Founder, Fairplay, on MBN.

According to the survey, nearly half of Asian and EU CEOs, along with 34% of US CEOs, see the geopolitical landscape as a high-impact issue for their companies. This sentiment underscores the uncertainty surrounding global trade dynamics and the potential ramifications of escalating protectionist policies. 

Aside from this threat, the survey highlights that global executives are also focusing on economic risks and technological integration. The specter of a recession also continues to loom large. While concern has slightly diminished from last year, with 46% of CEOs ranking a potential downturn as a high-impact issue, the anxiety over economic instability remains palpable.

Amid these geopolitical and economic concerns, CEOs are placing increasing emphasis on strengthening their supply chains. The survey reveals that 71% of US CEOs plan to adjust their supply chain strategies over the next three to five years, a notable increase from 54% last year. This shift also reflects the broader trend to adopt technology to make supply chains smarter, more sustainable, and transparent, according to Francisco Hurtado, Director of Industry and Consumer, Minsait.

At the same time, AI continues to emerge as both a potential boon and a significant challenge for business leaders. While many CEOs report AI's positive impact on workforce productivity, the survey indicates that talent shortages remain a critical obstacle. Nearly half of global CEOs cite a lack of expertise as the top challenge to successfully integrating AI into their organizations. Recently, a survey by the General Assembly revealed that 58% of senior leaders in the United States and the United Kingdom have not undergone AI training, with many lacking confidence in using AI tools or evaluating AI vendors, as reported by MBN

Despite these hurdles, only 9% of executives view worker resistance as a major barrier to AI adoption. The technology’s ability to enhance productivity, customer satisfaction, and innovation are seen as its most significant contributions to business performance.

The survey gathered insights from over 1,700 executives, including more than 500 CEOs, primarily from North America, the European Union, Asia, and Latin America.