Entrepreneurs turn to AI for efficiency, not new markets

Entrepreneurs surveyed by UBS Global Wealth Management expect artificial intelligence to deliver operational gains over the next five years, but many do not see it as a path to new markets or sustainability goals.

UBS has published its second Global Entrepreneur Report, based on a survey of 215 entrepreneur clients and members of its Industry Leader Network across 26 markets. The businesses represented recorded combined annual revenue of about USD $34.3 billion.

Overall sentiment remained positive. Sixty-eight percent of respondents said they were optimistic about their business over the next 12 months. Customer demand was the most frequently cited reason, with 64% expecting increased appetite for their products and services.

Technology and innovation also featured prominently. A third of respondents cited advances in technology and innovation as a reason for optimism, matching the share who pointed to favourable economic conditions. Adoption of more sustainable practices was cited by 23%.

Hiring and expansion

More than half of entrepreneurs surveyed plan to expand their workforce in 2026. Hiring intentions were strongest in technology, healthcare, finance and real estate, where 56% plan to hire in the next 12 months.

Regional differences were notable. In Europe, 63% of entrepreneurs expect to take on new staff, and 34% plan to do so significantly. Looking five years ahead, 80% of entrepreneurs globally expect to increase headcount, and 37% said they plan to do so substantially. Entrepreneurs in the United States were the most likely to anticipate workforce growth over that horizon, at 94%.

Expansion plans also extended beyond staffing. Forty-five percent of entrepreneurs said they were considering relocating or expanding their business to another country or location. This was most common in technology and healthcare, where 54% are contemplating a move, and in consumer discretionary and consumer staples, where 50% said the same.

Access to new customer markets was the leading motivation for a move, cited by 64% of those considering relocation or expansion. Other reasons included being closer to clients, partners or suppliers (30%), seeking more favourable regulatory environments (25%), and reducing operating costs (24%).

AI expectations

AI emerged as the most frequently cited technology opportunity in the survey. Sixty-one percent of respondents said it offered the biggest commercial opportunity. Views varied by company size: two-thirds of businesses with more than USD $100 million in revenue saw AI as offering the greatest advantage, compared with 57% of smaller firms.

Entrepreneurs described the main benefits in operational terms. Sixty-seven percent expected AI-driven efficiency gains or automation to have the biggest positive impact over five years. More than half expected improvements in data analysis and decision-making (55%). A similar share (54%) anticipated lower costs and improved margins.

The survey also suggested limits in how entrepreneurs currently frame AI's role. Only 18% saw it as helpful for entering new markets or creating new revenue streams, and just 8% linked it to sustainability and environmental goals.

Sector divide

Responses differed by industry. Almost three-quarters of technology and healthcare business owners (73%) said AI offered the biggest opportunity. The figure was 68% in finance and real estate and 53% among industrial company owners.

Consumer-facing sectors were more likely to emphasise data-driven decision-making. In consumer discretionary and staples, 62% said AI's biggest value would be strengthening analysis and decisions, associating it with forecasting, pricing and customer engagement.

Supply-chain optimisation also resonated more in those sectors. Thirty-eight percent of consumer discretionary and staples entrepreneurs cited it, compared with 26% across all sectors.

Barriers to adoption

The report highlighted constraints on AI adoption. Forty-six percent cited a shortage of skilled employees with relevant expertise. This was most acute in consumer-focused sectors (51%) and least acute in finance and real estate (36%).

A further 41% said a lack of understanding of how to apply AI in their business was a hurdle. Alongside AI, automation and robotics featured strongly for industrial entrepreneurs: 47% said automation and robotics represented the technology with the biggest opportunity.

Geopolitics and politics weighed on the outlook even as entrepreneurs expressed optimism. Political uncertainty was cited as the top concern by 42% for 2026, rising to 46% over a five-year horizon. Respondents also pointed to potential shifts in trade policy (36%), the risk of a global recession (35%), and the possibility of major geopolitical conflicts (35%).

Many entrepreneurs said they planned operational responses. Two-thirds (66%) plan to boost operational efficiency, and 60% aim to diversify their markets and customer bases.

Benjamin Cavalli, Head of Strategic Clients & Global Connectivity at UBS Global Wealth Management and Co-Head EMEA OneUBS, said:

"Entrepreneurs are entering this year with remarkable resilience and a renewed sense of ambition. Despite persistent geopolitical uncertainty, nearly seven in ten remain optimistic about the year ahead, driven by strong customer demand and rapid advances in technology."

Cavalli added: "We're seeing founders double down on innovation, expand into new markets, and adapt their strategies to stay ahead of shifting global dynamics. What comes through loud and clear in this year's findings is that entrepreneurs are not preparing for retrenchment. They're preparing for reinvention, and they're doing so with the clarity and confidence that have always defined the world's most dynamic business builders."