Global business leaders are increasingly treating disruption as a permanent feature of the operating environment, a new study finds.
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Although supply chain pressures, geopolitical tensions and technology-driven change remain intense, companies are becoming more adept at responding to them, with persistent disruption gradually being normalised, the 7th annual Disruption Index by AlixPartners shows.
The survey, which polled 3,200 chief executives (CEO) and senior executives across 11 countries, suggests that while the intensity of disruption has moderated, nearly half of respondents say their businesses were heavily affected over the past year.
The Disruption Index score is calculated by analysing the number and severity of disruptive forces. This year, the disruption score fell slightly to 70, down three points from last year.
The 2026 index shows that energy prices, inflation, tariffs, geopolitics and cybersecurity threats remain key stress points whereas artificial intelligence (AI), business-model reinvention and geopolitical repositioning are emerging as critical levers for companies seeking to turn disruption into competitive advantage.
Globally, China remains the most disrupted market, posting a disruption index of 77 — the highest among the 11 countries surveyed. However, the figure marks the third consecutive annual decline, down from 83 in 2024 and 81 in 2025, signalling a shift from acute turbulence to a more adaptive phase.
More than half (51 per cent) of executives in China – the highest proportion globally – say they have already made significant changes to their business models in response to ongoing challenges, including economic slowdown, geopolitical tensions and demographic decline.
These changes focus primarily on accelerating technology adoption, improving profitability and expanding into new markets. Ignatius Tong, partner and managing director and co-leader of Greater China at AlixPartners, said disruption is increasingly viewed as a catalyst rather than a setback.
“Disruption is not a setback – it is a catalyst for growth. Companies in China are demonstrating agility in today’s extraordinary environment, driving some of the world’s most ambitious transformation agendas,” Tong said, noting that many Chinese companies are pursuing overseas expansion to unlock new opportunities and drive sustainable growth.
Energy and power generation, retail, and financial services were identified as the three most disrupted sectors in China this year. Meanwhile, China’s automotive industry recorded a 12 per cent year-on-year decline in its disruption index, although it remains the most disrupted industry globally due to slower growth, intense competition and persistently high costs.
AI optimism runs high – especially in China
Globally, eight in 10 executives say they are optimistic about AI’s long-term impact. In China, confidence is even stronger, with 90 per cent expressing optimism.
Heavy investment in AI has placed China among the global leaders in deployment. Some 38 per cent of Chinese executives say they are extremely confident in AI’s potential to drive growth, particularly through automation of physical processes and robotics.
In terms of investment, among the 60 per cent of Chinese executives increasing digital spending this year, more than a third (36 per cent) cite AI as their primary focus. Operational automation is emerging as a key opportunity, with 77 per cent highlighting the automation of physical processes and expecting humanoid robots to be deployed at scale within five years.
Despite these trends, executives are mindful of the risks of AI. 95 per cent of CEOs expect AI to lead to layoffs within five years, including 44 per cent who project workforce reductions of 10 per cent or more within their organisations. In addition, 38 per cent warn that excessive reliance on AI could erode employees’ critical thinking and problem-solving skills.
Stephen Yu, partner and managing director and co-leader of Greater China at AlixPartners, noted that AI is reshaping the C-suite agenda but brings new governance and workforce challenges.
“What distinguishes true AI leaders is their ability to act decisively – embedding clear governance and robust risk management frameworks, while investing in employee resilience to ensure AI is deployed both successfully and responsibly,” he said.
The report also finds that the fastest-growing companies are responding to ongoing uncertainty with more decisive action than their peers.
Nearly three-quarters (73 per cent) of global executives say they have diversified supplier and trading partner networks to cope with tariffs. In China, 48 per cent report similar adjustments.
Growth leaders are also reshaping product portfolios and ramping up compliance spending. Around 59 per cent have increased investment in risk management and regulatory compliance, while 78 per cent say they are changing strategies in response to evolving US-China relations – significantly outpacing less agile competitors.
As disruption becomes the norm, the report suggests that competitive advantage will hinge less on weathering shocks and more on the speed and boldness with which companies adapt to them.
