TLDR: A recent KPMG global study indicates a strong wave of optimism among CEOs in the Energy, Natural Resources, and Chemicals (ENRC) sectors, with a significant focus on Artificial Intelligence (AI) as a primary driver for growth and sustainability. The report highlights increased confidence in mid-term industry prospects and a substantial commitment to AI investments, despite ongoing economic and geopolitical uncertainties.
CEOs across the Energy, Natural Resources, and Chemicals (ENRC) sectors are demonstrating a robust sense of optimism regarding future growth, largely driven by strategic investments in Artificial Intelligence (AI), according to KPMG’s 2025 Global Energy, Natural Resources and Chemicals CEO Outlook. The study, which surveyed 110 energy company CEOs in 11 markets with revenues of at least $100 million, reveals a sector poised for technology-led transformation amidst persistent global challenges.
Optimism for mid-term industry growth has notably risen, with 84% of CEOs expressing confidence, a significant increase from 72% in 2024. This positive outlook is attributed to resilient demand for both fossil fuels and renewables, coupled with growing investments in energy storage, smart grids, and carbon capture technologies. Approximately 78% of leaders also maintain a positive view of their own company’s growth prospects, although concerns about inflation and trade volatility are tempering enthusiasm within certain segments of the chemicals industry.
AI has rapidly transitioned from an experimental tool to a core strategic imperative at the board level. A substantial 65% of energy CEOs now rank generative AI as a top investment priority, marking a 12 percentage point increase from the previous year. Furthermore, 72% of these CEOs plan to allocate between 10% and 20% of their budgets to AI initiatives over the next 12 months. The expected return on investment (ROI) for AI is also accelerating, with two-thirds of CEOs anticipating measurable returns within one to three years, a stark contrast to only 15% who held this expectation a year ago. The adoption of agentic AI systems, capable of autonomous decision-making, is also gaining momentum, with 51% of respondents expecting these systems to drive transformational operational impacts.
Beyond growth, AI is seen as a critical enabler for sustainability goals. A remarkable 82% of CEOs believe AI can directly contribute to reducing emissions and optimizing energy use through predictive grid management, real-time monitoring, and advanced efficiency analytics. Nearly three-quarters (74%) also recognize AI’s potential to enhance climate-risk modeling and inform investment decisions towards low-carbon projects. Despite this, governance remains a weak point, with only 26% of CEOs expressing strong confidence in their existing ESG oversight structures. Nevertheless, 79% believe AI will improve the quality and reliability of sustainability-related data and disclosures, which is crucial for meeting increasing demands from investors and regulators for verifiable reporting.
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While optimism prevails, challenges such as cybersecurity, ethics, and data fragmentation are identified as key barriers to AI adoption. The report also highlights evolving M&A strategies, with only 36% of executives planning ‘high-impact’ deals in 2025, down from 58% in 2024, and 55% anticipating ‘moderate’ deal activity, signaling a shift towards more measured expansion and capital discipline.
