- 84 percent of CEOs are optimistic about mid-term industry growth—up from 72 percent in the three-year outlook starting in 2025.
- 65 percent of CEOs rank generative AI as a top investment area. Yet, cybersecurity, ethics, and data fragmentation remain key barriers to adoption.
- 40 percent of CEOs are reskilling and upskilling roles impacted by AI, while 72 percent are focused on retaining and retraining top talent.
- 82 percent of CEOs believe AI can support emissions reduction and energy efficiency.
Despite persistent economic and geopolitical headwinds, CEOs in the energy, natural resources and chemicals (ENRC) sector are optimistic about growth and are doubling down on artificial intelligence (AI), talent development, and sustainability to future-proof their organizations, according to KPMG 2025 Global Energy, Natural Resources and Chemicals CEO Outlook.
Optimism rises among energy leaders despite inflation and market volatility
Despite inflation and regulatory headwinds, confidence among CEOs is rising, with 84 percent optimistic about mid-term industry growth—up from 72 percent from the last survey. This outlook is driven by strong demand for both fossil fuels and renewables, alongside innovation in energy storage, smart grids, and carbon capture.
While 78 percent remain positive about their own company’s growth, a slight dip from last year reflects concerns over shifting regulations, trade volatility, and inflationary pressures—particularly in the chemicals sector.
M&A strategies are also evolving with just a few CEOs (36 percent) expecting to pursue ‘high-impact’ deals in 2025, down from 58 percent in the previous survey, while 55 percent anticipate ‘moderate’ deal activity, a rise from 38 percent last year, suggesting a shift toward more cautious growth strategies.
AI momentum builds—but cyber risks and data barriers loom large
Artificial intelligence has rapidly evolved into a core strategy in the energy sector, with 65 percent of CEOs now ranking generative AI as a top investment—up 12 points from previous year’s survey—and 72 percent planning to allocate 10–20 percent of their budgets to AI over the next year. ROI expectations are climbing, with 66 percent anticipating returns within 1–3 years, up significantly in comparison to just 15 percent last year.
Momentum is also building around agentic AI, with 51 percent expecting it to transform operations and workforce efficiency. Yet despite growing confidence, challenges persist. Ethical concerns (55 percent), fragmented data systems (49 percent), and regulatory complexity (47 percent) continue to hinder adoption, while rising cyber threats—fraud (64 percent), identity theft and data privacy (59 percent), and cyber-attacks (51 percent)—are identified as key concerns among CEOs.
Talent takes center stage as energy sector seeks to build AI-ready teams
As AI reshapes the energy sector, companies are grappling with a deepening talent crunch—especially with a general shortage of engineers in oil and gas, mining and metals. CEOs are responding with urgency, ramping up their talent strategies that include reskilling and upskilling roles impacted by AI (40 percent) and tailoring training to bridge generational gaps (31 percent).
Yet only 18 percent offer AI education across their entire organization. To overcome this barrier, nearly three-quarters (72 percent) of leaders are focused on retaining and retraining high-potential talent. Still, the path forward is challenging. Overcoming the skills gap remains the biggest hurdle for 43 percent of CEOs, followed by competition from tech firms offering high salaries (22 percent).
Climate pressure mounts as AI becomes a catalyst for sustainability in energy
As global emissions rise, sustainability has shifted from corporate responsibility to strategic imperative. Climate events and environmental disruption emerged as key challenges shaping strategy for 27 percent of CEOs – more than in any other sector in the survey. While 62 percent say they are confident in meeting 2030 net-zero goals, only 38 percent fully integrate ESG into capital decisions, and over half admit their ESG strategies fall short of stakeholder expectations.
AI is also gaining traction as a strategic lever for ESG progress, with its ability to monitor energy grids in real time and optimize power flow to prevent blackouts.
More than four out of five (82 percent) CEOs believe AI can help reduce emissions and optimize energy use, while 74 percent see its potential to enhance climate risk analytics to better model future scenarios.
Yet governance remains a weak spot—only 26 percent feel very confident in their ESG governance systems. Still, 79 percent support AI’s role in enhancing sustainability-related data and disclosures, signaling a clear path forward.
Anish De, Global Head of Energy, Natural Resources and Chemicals at KPMG International, stated, “This year’s findings show what many in the energy sector already know: big changes are underway. CEOs are rethinking their approach to the energy transition and retraining teams to keep up with the rise of AI, to build a workforce that’s quicker, smarter, and ready for the future. Despite the ebbs and flows of sentiments, CEOs recognize that sustainability isn’t just a good-to-have element in strategy; it’s become non-negotiable, central to how companies operate. With AI and especially agentic AI’s potential to drive real operational gains and help companies reach their sustainability goals faster, the call for stronger governance and oversight will be more important than ever.”
Tidarat Chimluang, Partner, Head of Energy, Natural Resources and Chemicals at KPMG in Thailand, stated, “Thailand’s energy sector is entering a defining period, with momentum shifting from long-term ambition toward practical execution. As the country advances its renewable energy and net-zero commitments, CEOs are now focused on translating policy direction – including power development planning updates, accelerating renewable procurement, and regional interconnection efforts – into investable strategies.
Growth is increasingly shaped not only by electricity demand but also by the need to strengthen grid resilience, expand large-scale energy storage, and prepare for transition technologies such as Small Modular Reactors (SMRs), hydrogen solutions, and carbon capture.
At the same time, AI and digital technologies are becoming fundamental enablers of operational efficiency, predictive maintenance, renewable forecasting, and energytrading optimization. Thailand’s accelerated investment in digital infrastructure, smart grid systems, and improved data and interoperability standards is opening new pathways to enhance energy security and meet emerging climaterelated requirements across the value chain.
The sector’s transformation also underscores the importance of reskilling and upskilling the workforce, ensuring that organizations have the capabilities needed to deliver these changes on the ground. These dynamics – technology integration, regulatory evolution, and talent readiness – are increasingly defining long-term strategic and capital investment decisions for CEOs and energy leaders across Thailand.”
