PwC Report: Only 38% of Luxembourg's CEOs Express Confidence in Long-Term Viability

On Wednesday 2 April 2025, PwC Luxembourg unveiled the findings of its CEO Survey Report 2025, which looked at how business leaders in the Grand Duchy are navigating the current global landscape.

According to PwC, the survey revealed that concern is growing among Luxembourg CEOs regarding the long-term viability of their businesses, but they remain committed to reinvention and innovation as key strategies for sustainability.

The survey noted that within the last few years there has been an increase in uncertainty across the globe, driven by geopolitical conflict, inflation and macroeconomic unpredictability. Luxembourg CEOs were reported to recognise the need to adapt to this changing world, to ensure the long-term viability of their companies. 38% of Luxembourg CEOs believed their companies will remain viable for the next decade, compared to 55% of global CEOs. This represents a sharp decline from two years ago, when 51% of Luxembourg CEOs expressed confidence in their long-term business viability. This shift is reported to emphasise the increasing pressures and uncertainties facing business leaders in the Grand Duchy.

PwC highlighted the following key findings from the report: 

- innovation and excellence in Luxembourg: despite concerns about obsolescence, Luxembourg’s local subsidiaries have the potential to drive innovation for their parent companies;
- business conditions have improved: challenges related to working with regulators and public-private sector collaboration have eased, reflecting Luxembourg’s commitment to fostering a business-friendly environment;
- reinvention is essential: Luxembourg CEOs understand that transformation is necessary to remain competitive amidst global headwinds;
- climate investments need a boost: while environmental, social and governance (ESG) considerations are integrated into executive compensation, Luxembourg firms lag behind global counterparts in climate-friendly investments;
- global trends shape local business: CEOs in Luxembourg identify economic, demographic, technological and geopolitical trends as more significant threats than policy-related issues;
- AI deployment plans are more advanced: compared to global peers, Luxembourg CEOs have clearer strategies for integrating artificial intelligence (AI) into their businesses, but there might be a gap between ambitions and the full-scale delivery of these technologies.

The survey underlined that one of the most pressing concerns for Luxembourg CEOs is the availability of workers with key skills. More than a third of local business leaders identified this as a concern, compared to the 23% global average. However, Luxembourg companies are expected to remain competitive in attracting talent, with an anticipated workforce expansion of 3.9% in the next year, surpassing the global average of 3.7%.

AI has emerged as a key driver of growth and innovation for Luxembourg's financial sector. The survey revealed that 50% of financial services CEOs in Luxembourg expect AI to increase profitability by at least 5% in the next year. Moreover, 55% of Luxembourg CEOs have concrete plans to integrate AI into their technology platforms over the next three years.

Despite Luxembourg's reputation as a global leader in sustainable finance, the survey findings indicated that local firms have been slower to make climate-friendly investments compared to their global counterparts. 76% of Luxembourg companies have initiated climate-related investments in the past five years, one of the lowest rates globally. However, with the introduction of new government incentives, including an 18% investment tax credit for digital transformation and green projects, Luxembourg businesses are expected to accelerate their sustainability efforts. CEOs also acknowledged the role of EU regulations, such as the upcoming AI Act, in providing a stable framework for integrating new technologies while ensuring compliance with sustainability goals.

According to François Mousel, Managing Partner of PwC Luxembourg: "At a time when the European economy is poised to experience a period of potentially protracted sluggish growth, Luxembourg – with its internationally renowned financial centre and its strong and robust industrial heritage – can distinguish itself and become a bright mark for prosperity, technological innovation and climate adaptation and resilience. It is up to you, the CEOs of our Grand Duchy, to seize the opportunities at hand and guide the way forward."

PwC concluded that, as Luxembourg’s CEOs navigate a rapidly changing economic landscape, the need for reinvention is crucial. PwC's CEO Survey Report 2025 highlighted the challenges and uncertainties facing Luxembourg’s business leaders. The findings showed that Luxembourg CEOs are increasingly aware of the necessity for business reinvention, addressing both global economic unpredictability and specific local challenges.

Companies in Luxembourg are considered to be well-positioned to advocate for transformation and create value through innovative delivery models and business solutions, such as digital managed services, project management, marketing, human resources, data storage and anti-financial crime operations.

Cécile Liégeois, Clients and markets Leader of PwC Luxembourg, said "the survey highlights how Luxembourg CEOs acknowledge mixed results in climate finance but very positive results on AI, key areas that are necessary for any long-term transformation and adaptation. It is imperative that they intensify their efforts in these fields by taking a more hands-on approach to their firms’ climate investments. While strides have been made, these technologies and practices need to be embraced comprehensively to ensure businesses are positioned to navigate an uncertain future. Expanding into new client sectors, reimagining customer engagement and prioritising investments in business reinvention will be essential steps in the coming years."

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