CEOs Zero In on Productivity and AI as Top Strategic Priorities for 2026

Over the last two years, a significant shift has redefined the priorities occupying the minds of chief executive officers worldwide, culminating in a singular, urgent focus: productivity. This strategic realignment is underscored by IBM’s annual 2026 CEO Study report, a comprehensive analysis that tracks the evolving landscape of global C-suite concerns. The study reveals that productivity and profitability have collectively ascended to become the undisputed top priority for 2026, marking a steady climb from fourth place in 2024 and second place in the preceding year. Concurrently, the study highlights a parallel and equally striking development: CEOs now identify productivity as their foremost challenge, a considerable leap from its seventh-place ranking just last year. This intensified focus on operational efficiency and output is inextricably linked to the rapid advancements and integration of artificial intelligence (AI) and the imperative for widespread technology modernization, which closely follow productivity on the list of 2026 CEO priorities.

The Evolving CEO Agenda: A Recent History

The trajectory of CEO priorities over the past few years reflects a dynamic response to a series of global economic, technological, and social shifts. In the immediate aftermath of the pandemic, CEO agendas were heavily dominated by concerns such as supply chain resilience, digital transformation acceleration, talent retention amidst the "Great Resignation," and navigating complex geopolitical landscapes. Environmental, Social, and Governance (ESG) initiatives also gained significant traction as stakeholders demanded greater corporate responsibility.

However, as the global economy navigated persistent inflation, rising interest rates, and the specter of recession in various markets, a fundamental recalibration began. In 2024, while digital transformation and talent remained crucial, concerns about market volatility and economic uncertainty started to push efficiency higher up the agenda. By 2025, as initial fears of a sharp downturn somewhat receded but cost pressures persisted, profitability naturally rose in prominence, bringing productivity with it. The 2026 study firmly entrenches productivity not just as a desired outcome but as the primary strategic lever for achieving sustainable profitability in an increasingly complex operating environment. This evolution demonstrates a maturation of strategic thinking, moving from broad transformative goals to the granular mechanisms of value creation. The IBM CEO Study, which draws insights from thousands of C-suite executives globally, serves as a vital barometer for these shifts, providing an annual snapshot of the collective leadership mindset.

Productivity’s Ascent: A Multifaceted Challenge

The elevation of productivity to both the paramount priority and the leading challenge signals a critical juncture for global enterprises. This isn’t merely about working harder; it’s about working smarter and more effectively across all organizational functions. The reasons for this intensified focus are multifaceted. For years, major economies have grappled with sluggish productivity growth. For instance, in the United States, nonfarm business sector labor productivity growth averaged a mere 1.4% annually from 2007 to 2019, significantly lower than the 2.8% average from 1995 to 2007. Post-pandemic, while there were initial spikes, sustained, robust growth has remained elusive. Factors contributing to this challenge include:

• Skill Gaps: A persistent mismatch between available skills and the evolving demands of the digital economy hinders efficiency and innovation.
• Legacy Systems and Processes: Outdated technologies and bureaucratic processes create bottlenecks, reduce agility, and prevent optimal resource utilization.
• Hybrid Work Complexities: While offering flexibility, managing a distributed workforce effectively to maintain cohesion, communication, and output poses new managerial and technological challenges.
• Employee Burnout and Engagement: A disengaged workforce is an unproductive one. Issues like excessive workloads, lack of clear direction, and insufficient recognition can severely impact output.
• Data Overload and Poor Decision-Making: Organizations are awash in data, but often lack the tools or capabilities to transform it into actionable insights, leading to suboptimal strategic and operational choices.

For CEOs, solving the productivity puzzle is not merely an operational task; it is a strategic imperative directly linked to competitive advantage, market share, and long-term financial health. The direct correlation between enhanced productivity and improved profitability is self-evident: more efficient use of resources, optimized processes, and higher output per employee directly translate into stronger financial performance.

AI and Tech Modernization: The Engine of Future Productivity

Unsurprisingly, the close proximity of AI and technology modernization on the list of CEO priorities is no coincidence. Leaders recognize that the pathway to unlocking unprecedented levels of productivity lies squarely in harnessing these transformative forces. AI, particularly generative AI, is no longer a futuristic concept but a present-day tool poised to revolutionize every facet of business operations.

• Efficiency Gains: AI-powered automation can streamline repetitive tasks, from customer service chatbots and data entry to advanced manufacturing processes and supply chain optimization. This frees up human capital for more complex, creative, and strategic endeavors.
• Enhanced Decision-Making: Predictive analytics and machine learning algorithms can process vast datasets to identify patterns, forecast trends, and provide insights that enable faster, more informed strategic decisions, reducing risk and capitalizing on opportunities.
• Innovation and Product Development: AI can accelerate research and development cycles, assist in product design, and even generate new ideas, fostering a culture of continuous innovation.
• Cost Reduction: By optimizing resource allocation, reducing waste, and automating labor-intensive processes, AI directly contributes to significant cost savings, bolstering profitability.

Alongside AI, technology modernization is the foundational requirement. This involves a comprehensive overhaul of an organization’s digital infrastructure, including:

• Cloud Adoption: Migrating to cloud-based platforms enhances scalability, flexibility, and data accessibility, crucial for AI deployment and agile operations.
• Data Infrastructure: Building robust data governance frameworks, data lakes, and analytics capabilities ensures that AI systems have access to clean, reliable, and relevant data.
• Cybersecurity: As organizations become more digitally integrated and reliant on AI, advanced cybersecurity measures are paramount to protect sensitive data and intellectual property from escalating threats.
• Legacy System Replacement: Phasing out outdated, siloed systems that hinder integration and data flow is essential for creating a cohesive and efficient technological ecosystem.

CEOs understand that a failure to modernize their technological backbone will impede their ability to effectively deploy AI, thus leaving them at a significant disadvantage in the race for productivity and market leadership.

Reshaping Leadership: The "Rewiring" Imperative

Achieving the ambitious goals of enhanced productivity and profitability in the AI era demands more than just technological investment; it requires a fundamental "rewiring" of the C-suite itself. IBM researchers emphasize that this transformation must encompass everything from decision-making frameworks to the distribution of authority and, most critically, the strategic and ethical deployment of AI.

• Agile Decision-Making: Traditional hierarchical decision-making processes are often too slow for the pace of modern business. The C-suite must foster a culture of agile decision-making, empowering teams, leveraging real-time data, and embracing experimentation. This involves breaking down silos and encouraging cross-functional collaboration, ensuring that insights from technology, HR, finance, and operations converge swiftly to inform strategy.
• Decentralized Authority and Empowerment: To truly unleash productivity, power structures need to shift. This means distributing authority more widely, empowering employees at all levels to make decisions within defined parameters, and fostering a sense of ownership. Such decentralization can accelerate problem-solving, improve responsiveness, and foster innovation from the ground up.
• Strategic AI Deployment: This is not merely an IT function. The entire C-suite must collaboratively define the vision for AI integration, ensuring it aligns with business objectives, addresses ethical considerations (e.g., bias, transparency, job displacement), and is accompanied by robust change management strategies. This includes establishing clear governance for AI, investing in responsible AI development, and preparing the workforce for human-AI collaboration.

The IBM study explicitly states that "CEOs will need to work with their C-suite leaders to build execution mechanisms, incentives and operating models all focused on driving these outcomes." This implies a move away from siloed departmental objectives towards integrated, enterprise-wide goals, where accountability for productivity and AI adoption is shared across the leadership team.

HR at the Helm: The CHRO’s Pivotal Role

Among the C-suite leaders critical to this transformation, the Chief Human Resources Officer (CHRO) stands out as an increasingly pivotal figure. The IBM study reports that nearly 60% of CEOs surveyed anticipate a significant increase in the influence of their HR executives in the coming years. This projection underscores a profound recognition that people-centric strategies are at the heart of productivity and successful AI integration.

CHROs are uniquely positioned to address the human dimension of the productivity challenge and the AI revolution. Their responsibilities extend beyond traditional HR functions to encompass strategic workforce planning, talent development, culture shaping, and ethical considerations in technological deployment.

• Talent Management for the AI Era: CHROs are tasked with attracting, retaining, and developing the skills necessary for an AI-powered future. This involves identifying critical skill gaps, designing robust reskilling and upskilling programs, and fostering a culture of continuous learning. Experts suggest CHROs must champion initiatives that prepare employees for new roles that emerge from AI adoption, focusing on uniquely human skills such as critical thinking, creativity, emotional intelligence, and complex problem-solving.
• Workforce Transformation and Change Management: The introduction of AI and new technologies inevitably brings significant organizational change. CHROs play a crucial role in leading change management efforts, communicating the vision, addressing employee anxieties, and ensuring a smooth transition. This includes fostering psychological safety, managing expectations, and creating pathways for employees to adapt and thrive in new work environments.
• Driving Productivity Initiatives: HR leaders are increasingly integral to designing performance management systems that align with productivity goals, fostering employee engagement through improved work design and well-being programs, and optimizing organizational structures for efficiency and collaboration. They ensure that technology serves to augment human capabilities rather than simply replace them, thereby enhancing overall output.
• Ethical AI Deployment: With their deep understanding of organizational culture and employee welfare, CHROs are essential in guiding the ethical implementation of AI. This includes addressing concerns about algorithmic bias, ensuring fairness in hiring and performance evaluations, managing data privacy, and navigating potential job displacement scenarios with empathy and strategic foresight. They advocate for human-centric AI design and deployment, ensuring technology enhances the employee experience and adheres to corporate values.

Leading HR executives recognize this expanded mandate. "Our role has shifted from purely administrative to deeply strategic," one CHRO might comment, "We are no longer just managing people; we are orchestrating the human element of digital transformation, ensuring our workforce is not only prepared for the future but also empowered to shape it responsibly."

Strategic Pathways to Productivity: IBM’s Five Recommendations

To meet the escalating demand for productivity and profitability in the age of AI, IBM’s study implicitly recommends a multi-pronged strategic approach that fundamentally rethinks how organizations operate and lead. While the specific five strategies were not enumerated in the initial brief, based on the context of the report’s findings, these actionable recommendations would logically emerge:

1. Embrace AI for Hyper-automation and Intelligent Decision-Making: Organizations must move beyond pilot projects and strategically embed AI across core business functions. This involves identifying processes ripe for hyper-automation (combining AI, machine learning, robotic process automation, and other technologies) to eliminate manual tasks, reduce errors, and accelerate workflows. Simultaneously, investing in AI-driven analytics and insights platforms will empower leaders with real-time, predictive intelligence for faster, more accurate decision-making across sales, marketing, operations, and finance. This ensures that AI isn’t just a tool but an integral part of the operational nervous system.

2. Foster a Culture of Continuous Learning and Reskilling: With the rapid evolution of technology, the shelf life of skills is shrinking. CEOs must prioritize a culture where learning is embedded into the daily workflow. This means investing significantly in comprehensive reskilling and upskilling programs that prepare employees for new roles created by AI, enhance their digital literacy, and cultivate uniquely human skills that AI cannot replicate (e.g., creativity, critical thinking, emotional intelligence, complex problem-solving). CHROs will lead this transformation, ensuring learning pathways are personalized, accessible, and directly tied to strategic business needs.

3. Redesign Organizational Structures for Agility and Cross-Functional Collaboration: Traditional hierarchical structures can stifle innovation and slow down decision-making. To enhance productivity, organizations need to adopt more agile, flatter, and network-based structures that facilitate rapid iteration and cross-functional teamwork. This involves breaking down departmental silos, establishing fluid project teams, and empowering employees with greater autonomy. The goal is to create an environment where information flows freely, and diverse perspectives converge to solve complex problems efficiently, accelerating time-to-market and operational responsiveness.

4. Prioritize Data Governance and Analytics Capabilities: The efficacy of AI is directly proportional to the quality and accessibility of data. CEOs must recognize data as a critical enterprise asset and invest in robust data governance frameworks, ensuring data quality, privacy, security, and ethical use. This includes establishing clear data ownership, implementing advanced analytics tools, and building data literacy across the organization. A strong data foundation is non-negotiable for deriving meaningful insights, training effective AI models, and making data-driven decisions that propel productivity.

5. Invest in Human-Centric Technology Adoption and Change Management: Technology adoption is as much about people as it is about platforms. Successful productivity gains from AI require a human-centric approach to implementation. This means designing AI solutions that augment human capabilities rather than alienating employees, providing comprehensive training and support, and proactively managing the organizational change associated with new technologies. Leaders must communicate transparently about the benefits of AI, address employee concerns, and actively involve the workforce in the design and implementation process, fostering acceptance and maximizing the positive impact on productivity and employee experience.

Broader Implications and the Future of Work

The heightened focus on productivity and AI carries profound implications for the future of work, organizational design, and the broader economy. For organizations, the imperative to adapt is existential; those that fail to harness AI and modernize their operations risk being outmaneuvered by more agile, efficient competitors. This will likely lead to a further divergence between technologically advanced, high-productivity firms and those lagging behind.

For employees, the shift signals a continuous evolution of roles and skill sets. While some routine tasks may be automated, new, higher-value roles requiring human judgment, creativity, and interpersonal skills will emerge. The emphasis will move from task completion to problem-solving, innovation, and strategic thinking. This necessitates a proactive approach to lifelong learning and adaptability from the workforce.

Economically, widespread AI adoption and productivity gains could lead to a new era of growth, potentially offsetting demographic challenges and global supply chain disruptions. However, it also raises critical societal questions regarding income inequality, the need for robust social safety nets, and ethical frameworks for AI governance. Governments, businesses, and educational institutions will need to collaborate to ensure a just transition and maximize the benefits of this technological revolution for all stakeholders.

Conclusion: A New Era of Strategic Focus

The IBM 2026 CEO Study unequivocally marks a new era of strategic focus, where productivity stands as the paramount concern for global chief executives. Driven by the transformative power of AI and the undeniable need for technology modernization, leaders are challenged to "rewire" their organizations from the top down. This intricate process demands agile decision-making, decentralized authority, and, crucially, the strategic and ethical deployment of AI across all functions. The burgeoning influence of CHROs highlights the human element at the core of this transformation, emphasizing that sustainable productivity in the age of AI is ultimately about empowering people. As businesses navigate this complex landscape, the ability to effectively integrate technology with human potential will determine not only individual corporate success but also the trajectory of global economic progress.

Jen Colletta is managing editor at HR Executive. She earned bachelor’s and master’s degrees in writing from La Salle University in Philadelphia and spent 10 years as a newspaper reporter and editor before joining HR Executive. She can be reached at [email protected].