Corporate investment in artificial intelligence is set to double in 2026, as chief executives move to the centre of AI decision-making and treat the technology as a strategic imperative rather than a discretionary bet, according to the BCG AI Radar 2026 report.
The survey, which covered 2,360 executives across industries and regions, shows companies plan to raise AI spending to about 1.7 percent of annual revenue in 2026, up from roughly 0.8 percent in 2025. BCG said the sharp increase reflects growing conviction that AI is no longer an experimental tool but a strategic necessity for long-term growth and survival.
One of the major highlight in the report is the movement of AI leadership from technology teams to the executive suite. About 72 percent of CEOs now say they are the main decision-makers on AI in their organisations, double the level recorded last year. This marks a transition from AI being led by chief information officers to becoming a CEO-driven transformation agenda.
“AI corporate transformation is moving from a CIO-led initiative to a CEO-led strategy,” the report says, noting that AI outcomes are increasingly tied to enterprise-wide performance, capital allocation, and leadership accountability.
Despite ongoing uncertainty around near-term returns, companies appear unwilling to slow their AI push. Around 94 percent of organisations said they would continue investing in AI even if current initiatives fail to deliver financial returns in 2026, while only 6 percent plan to scale back spending if results fall short. This persistence suggests firms increasingly view AI as essential infrastructure rather than a discretionary investment.
The report also points to the rapid rise of agentic AI—systems capable of operating autonomously—as a major focus of spending.
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CEOs expect to allocate more than 30 percent of their AI budgets in 2026 to agentic AI, with nearly 90 percent believing these systems will help generate measurable returns on AI investments this year.
However, the growing autonomy of AI systems is amplifying concerns around risk. Data privacy and cybersecurity remain the top challenges associated with AI adoption, as executives warn that autonomous systems could introduce new vulnerabilities if governance frameworks do not evolve alongside the technology.
BCG identifies three CEO archetypes shaping AI adoption: Trailblazers, Pragmatists, and Followers. While only about 15 percent of CEOs fall into the Trailblazer category, this group is investing more aggressively, upskilling a larger share of its workforce, and deploying AI across entire business functions. The majority of executives are classified as Pragmatists, adopting AI more cautiously and focusing on lower-risk use cases.
CEOs in India, Greater China, and the Middle East and Africa express higher confidence that AI will deliver value, while executives in Europe and the United States are more likely to pursue AI adoption out of concern about competitive pressure.
Looking ahead, the report underscores how central AI has become to executive performance. Half of the CEOs surveyed said their job stability depends on getting AI strategy right by 2026, highlighting how deeply the technology is now embedded in corporate leadership, governance, and long-term competitiveness.