Disruption is the New Normal: How Global CEOs are Turning Chaos into Competitive Advantage

In the world of global business, the word "disruption" used to be a warning sign—a signal of impending crisis. But according to the latest data, that narrative has shifted. For today’s top executives, constant change isn’t just a hurdle to jump over; it’s the water they swim in. The 7th annual Disruption Index from AlixPartners reveals a fascinating trend: global business leaders are officially normalizing disruption, treating it as a permanent feature of the landscape rather than a temporary storm to weather.

The study, which surveyed 3,200 CEOs and senior executives across 11 countries, shows that while the world hasn’t necessarily become a calmer place, leaders are becoming significantly more adept at handling the heat. Although supply chain bottlenecks, geopolitical friction, and rapid tech shifts remain intense, the global Disruption Index score actually dipped slightly this year to 70, down from 73 last year. This suggests we are moving from a state of acute panic to a more calculated, adaptive phase of management.

The Anatomy of Modern Stress Points

What exactly is keeping CEOs up at night? The 2026 index points to a familiar list of suspects: fluctuating energy prices, stubborn inflation, aggressive tariffs, and cybersecurity threats. However, the way companies respond to these pressures has evolved. Instead of merely playing defense, forward-thinking organizations are using artificial intelligence (AI), business-model reinvention, and strategic geopolitical repositioning as levers to gain an edge over their competitors.

China: The World’s Most Disrupted (and Agile) Market

Nowhere is this shift more visible than in China. Despite posting the highest disruption score globally at 77, China is also showing the most resilience. This year marks the third consecutive decline in its disruption index—falling from 83 in 2024. This trend indicates a massive shift from "survival mode" to a more permanent state of adaptation.

Remarkably, 51% of Chinese executives say they have already overhauled their business models to tackle economic slowdowns and demographic shifts. Ignatius Tong, partner and managing director at AlixPartners, notes that for these leaders, disruption is no longer seen as a setback. "It is a catalyst for growth," Tong explains. "Companies in China are demonstrating agility in today’s extraordinary environment, driving some of the world’s most ambitious transformation agendas."

A Sector-by-Sector Breakdown

In China, the sectors feeling the most heat are energy, retail, and financial services. Meanwhile, the automotive industry—while still the most disrupted sector globally due to fierce competition and high costs—saw its local disruption index drop by 12% year-on-year. This suggests that even the most embattled industries are finding ways to stabilize amidst the chaos.

The AI Paradox: Massive Optimism Meets Harsh Reality

If there is one tool that CEOs believe will save them, it’s Artificial Intelligence. Globally, 80% of executives are optimistic about AI’s long-term impact. In China, that confidence skyrockets to 90%.

Investment is following that optimism. About 60% of Chinese executives are boosting their digital spending, with 36% of them prioritizing AI specifically. The goal? Automation. A staggering 77% of these leaders are looking toward automating physical processes, with many expecting humanoid robots to be a common sight in workplaces within the next five years.

However, this technological leap comes with a human cost. The survey delivers a sobering statistic: 95% of CEOs expect AI to lead to layoffs within the next five years. Among them, 44% anticipate reducing their workforce by 10% or more. Beyond jobs, 38% of leaders worry that over-reliance on AI could dull the critical thinking and problem-solving skills of their remaining employees.

Stephen Yu, co-leader of Greater China at AlixPartners, emphasizes that successful AI integration isn't just about the tech—it's about the rules. "What distinguishes true AI leaders is their ability to act decisively—embedding clear governance and robust risk management frameworks," Yu says.

The Playbook of the "Growth Leaders"

The report highlights a clear divide between those struggling and those thriving. The fastest-growing companies—the "Growth Leaders"—are moving with much more speed and boldness. While 73% of global executives have diversified their supplier networks to dodge tariffs, the growth leaders are going further.

Roughly 59% of these high-performing companies have increased their spending on risk management and regulatory compliance. Furthermore, 78% are actively changing their strategies to account for the complex US-China relationship, far outstripping their less agile peers.

Ultimately, the message for 2026 and beyond is clear: the goal isn't to wait for the world to stop changing. In an era where disruption is the baseline, competitive advantage belongs to those who can pivot the fastest and act the boldest.