The fast evolution of business models, fueled by generative AI (GenAI), is transforming the corporate world. What is currently predominant is that AI-based enterprises may soon precede the app and platform economies. With such fast changes, CEOs are focused on keeping up with reinvention, preparing their companies to thrive in a new era.

Reinvention through cost rationalization might be necessary, but growth will require big strategic moves, such as mergers and spinoffs. However, many CEOs turn to boards to develop such strategies, and many are reshaping these boards for today’s business realities.

AI Catering to The Need for Speed

The models AI has built for business change the fundamentals of decision-making. Managers now have near real-time data about how well the market and businesses are performing and can take strategic actions accordingly, leveraging the data instantly instead of making end-of-week report adjustments. 

According to the PwC 2025 AI Predictions, this acceleration-and-impact phenomenon is somewhat faster than what might have been thought, and businesses are required to accommodate this rapid change with speed and agility if they are to remain competitive, for AI-generated insights are fast changing the way of doing business.

What to Focus on in 2025

Strategy and Growth: Applying Productivity Multipliers

After years of increasing expenses, businesses are shifting towards cost efficiency. However, protecting profit margins should not come at the expense of agility. CEOs and CFOs must distinguish between cost-cutting and strategic investments that drive productivity and growth.

Companies that navigate economic downturns with a bold investment strategy often outperform competitors. The key lies in deploying resources effectively and integrating assets to foster consistent growth.

The CEO’s Recession Playbook

With economic uncertainty persisting, CEOs must revisit their recession strategies. Preparing for downturns is about survival and positioning the company for long-term transformation.

Transformation: Embracing Exponential Thinking

Organic growth alone rarely meets investor expectations. Transformational mergers and acquisitions are becoming a staple of high-performing companies. CEOs who regularly assess their business portfolio can make strategic divestments to align with evolving business models. PwC’s research suggests that leaders who proactively evaluate which assets to retain or divest are better positioned for success.

Game Changers are defining the Future of companies poised for long-term value creation as those solving global crises, leveraging exponential technologies, and pioneering new business models. PwC’s M&A Integration Survey highlights how businesses are cracking the code on large-scale transactions to drive transformation.

Value Creation: Business Model Reinvention

Companies must rethink how they create, deliver, and capture value to move from stagnation to innovation. Reinvention isn’t just a buzzword; it’s necessary to stay relevant in a rapidly evolving market.

Technology: Retooling ROI for the Digital Age

Despite significant investments in technology, many companies struggle to maximize returns. Successful organizations take an outcome-driven approach, integrating technologies like GenAI to achieve specific financial targets. However, CEOs must work with CIOs alongside innovation to embed security and risk management into their digital transformation strategies.

Scaling Generative AI for Business TransformationAI is no longer an experimental tool; it is imperative for business. Companies looking to scale AI adoption must have a structured deployment strategy to enhance operations, unlock data insights, and drive efficiencies.

Board Governance: Refreshing Leadership for a New Era

Corporate governance faces scrutiny due to evolving business models and economic conditions. Many CEOs are calling for board refreshment, with six in ten executives believing that at least one director ought to be replaced, according to the Board Effectiveness Survey published by PwC. The modern board needs members who go beyond traditional oversight and provide specialized expertise relevant to the current business challenges.

Sustainability: A Strategic Advantage

Global sustainability regulations, such as the European Union’s Corporate Sustainability Reporting Directive, reshape corporate accountability. Beyond compliance, sustainability initiatives present growth opportunities, attracting customers and talent while enhancing operational efficiency.

Global sustainability laws, such as the European Union’s Corporate Sustainability Reporting Directive, transform corporate responsibility. Sustainability offers opportunities for growth in addition to compliance, which involves attracting clientele and talent and gaining efficiencies and operational effectiveness.

CEO’s 2025 Vision

CEOs must navigate reinvention with great precision to stay abreast of the rapid evolution of business models. Whether through AI-led insights, strategic M&A, sustainability initiatives, or other pathways, adaptability and forward-thinking leadership are crucial factors in achieving success. By balancing cost management with investment in transformation, today’s CEOs are laying the foundation for sustained growth in the years ahead.