Companies are planning to double their spending on AI technology this year, which represents more than twice the increase for 2025, says management consulting firm Boston Consulting Group (BCG) in its ‘AI Radar: As AI Investments Surge, CEOs Take the Lead' report.

Additionally, 94% of CEs say they will continue investing in AI at current or higher levels, even if the investments do not pay off in the next year.

However, 80% of CEOs are more optimistic about AI’s return on investment (ROI) potential than they were a year ago. The rapid maturity of AI agents is one of the main reasons, with about 90% of CEs believing that agents will enable their companies to see measurable ROI this year, the report notes.

Owing to this, CEOs have committed more than 30% of their organisation’s AI investment for this year into agentic AI.

In doubling their investment this year, companies globally are drawing from budgets beyond the technology pool, BCG says.

“Despite economic uncertainty, this anticipated surge in spending reflects how much of a priority AI has become in the business world,” says BCG CEO and report co-author Christoph Schweizer.

“AI is no longer confined to IT or innovation teams; it’s reshaping strategy and operations from the top down with CEOs taking a leading role. Nearly three-quarters of CEOs say they are now the main decision-makers on AI, and half believe their jobs depend on it.”

Among the industries surveyed, all of them plan to increase their AI investments this year.

Financial institutions plan to spend 2% of revenues this year on AI, which is only marginally behind technology companies that plan to spend 2.1% of revenues on AI this year. However, industrial companies and real estate firms plan on spending 0.8% of revenues on AI.

Meanwhile, the intensity of AI investment in Africa is significant, with 59% of African companies planning to spend more than $50-million on AI this year. This capital is being directed toward high-impact areas such as agentic AI and massive workforce transformation, the report shows.

Currently, African organisations lead in workforce readiness, with 55% of the workforce already upskilled in AI, which is the highest rate globally, supported by an allocation of 46% of the total AI budget toward ongoing retraining and capability building, the BCG report shows.

“In Africa, the narrative has shifted from exploration to large-scale execution. Organisations across the continent are leveraging AI to leapfrog traditional infrastructure challenges.

“The Middle East and Africa region now accounts for some of the most aggressive AI budget allocations globally. African leaders are moving with a value-first mindset, and view AI as a primary engine for regional economic growth.”

Meanwhile, the financial commitment of African organisations is backed by a workforce strategy that prioritises upskilling, ensuring that the next generation of local talent is equipped to lead these autonomous systems, the report says.

This leadership is defined by a deep personal commitment to technology, as African CEOs spend an average of 8.3 hours a week personally expanding their AI expertise, which is more than any other surveyed region.

In markets such as Morocco and South Africa, this top-down engagement is critical, as 82% of African CEOs identify as the primary decision-makers for AI within their organisations, well above the global average of 72%.

This is also driven by a sense of urgency, with 71% of African executives believing their job stability depends on successfully executing an AI strategy by 2026, the report states.

Additionally, 84% of African CEOs are more optimistic about AI’s potential for a positive return on investment this year than in 2025, slightly above the global average of 82%.

The report confirms that across Africa, AI has shifted from a distant ambition to an urgent business priority, highlighting that African CEOs are not simply adopting technology rather they are becoming its architects.

By committing significant capital to agentic AI and large-scale workforce retraining, leaders are ensuring that global innovations are adapted to solve uniquely local challenges, from driving financial inclusion to boosting industrial efficiency. This value-led approach is positioning Africa as a global frontrunner in AI, transforming conviction into a long-term competitive advantage that will redefine the continent’s role in the digital economy, BCG says in the report.

CEO confidence in AI is higher in the East than in the West. About three-quarters of CEOs in India and Greater China are confident AI will pay off, compared with 44% in the UK, 52% in the US and 61% in Europe. Conversely, a larger share of Western CEOs say their organisations are investing in AI to avoid falling behind or because they feel pressure.

“CEOs have a defining role in shaping how AI delivers value. The true competitive advantage lies with those CEOs who will reshape functions end-to-end and invent new products and services that drive growth,” says technology and design division BCG X global leader and report co-author Sylvain Duranton.

“The fact that nine out of ten CEOs tell us that by 2028 the measure of success for a company will be heavily tilted towards those that are able to get AI right reflects the significant change we are seeing in the market,” he says.

The report identifies main areas that CEOs need to consider while steering their organisations through the next phase of AI.

CEOs must make AI a key priority, and leaders must commit to invest at scale and decisively across end-to-end business functions.

Further, CEOs must also aim to deepen AI literacy and expand individual AI fluency to effectively lead transformations, as well as upskill the workforce to optimise productivity, creativity, and judgement.

Additionally, while the expectations for ROI from AI have increased, CEOs must track AI’s impact to drive sustainable returns over time.