While supply chain pressures, geopolitical tensions and technology-driven change remain intense, businesses are becoming increasingly adept at responding to them, and sustained disruption is increasingly becoming the norm, AlixPartners’ seventh annual Disruption Index shows.
The survey, which surveyed 3,200 CEOs and senior executives across 11 countries, suggests that although the intensity of the disruption has eased, almost half of respondents say their business has been significantly impacted over the past year.
The fracture index score is calculated by analyzing the number and severity of fracture forces. This year’s confusion score fell slightly to 70, three points less than last year.
The 2026 index shows that while energy prices, inflation, tariffs, geopolitics, and cybersecurity threats remain key stress points, artificial intelligence (AI), business model reinvention, and geopolitical repositioning are emerging as important levers for companies seeking to turn disruptive situations into competitive advantage.
Globally, China remains the most disrupted market, with a Disruption Index of 77, the highest of the 11 countries surveyed. However, this figure represents the third consecutive year of decline from 83 in 2024 and 81 in 2025, indicating a transition from acute turbulence to a more adaptive phase.
More than half (51%) of Chinese executives – the highest percentage globally – say they have already made significant changes to their business models in response to ongoing challenges such as economic slowdown, geopolitical tensions and population decline.
These changes are primarily focused on accelerating technology adoption, increasing profitability, and expanding into new markets. Ignatius Tong, partner, managing director and co-leader of Greater China at Alix Partners, said disruption is increasingly seen as a catalyst rather than a setback.
“Disruption is not a setback, but a catalyst for growth. Chinese companies are demonstrating agility in today’s abnormal environment and are driving forward some of the world’s most ambitious transformation plans,” Tong said, noting that many Chinese companies are pursuing overseas expansion to tap 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 auto industry recorded a 12% year-on-year decline in the disruption index, even though it remains the most disrupted industry globally due to slowing growth, fierce competition and persistently high costs.
Optimism about AI is growing, especially in China
Globally, eight in 10 executives say they are optimistic about the long-term impact of AI. Confidence is even stronger in China, with 90% expressing optimism.
With significant investments in AI, China has become a world leader in its adoption. Some 38 percent of Chinese executives say they are very confident in AI’s potential to drive growth, particularly through the automation of physical processes and robotics.
When it comes to investment, of the 60% of Chinese business executives who are increasing their digital spending this year, more than a third (36%) cite AI as their main focus. Operational automation has emerged as a key opportunity, with 77% emphasizing the automation of physical processes and expecting humanoid robots to be deployed at scale within five years.
Despite these trends, executives recognize the risks of AI. 95% of CEOs expect AI to result in attrition within five years, including 44% who expect to reduce their workforce by 10% or more within their organization. Additionally, 38 percent warn that over-reliance on AI could undermine employees’ critical thinking and problem-solving skills.
Stephen Yu, partner, managing director and co-leader of Greater China at AlixPartners, noted that AI is reshaping the executive agenda, but also bringing new challenges to governance and the workforce.
“The hallmark of a true AI leader is the ability to act decisively, embedding clear governance and a robust risk management framework, while investing in the resilience of the workforce to ensure AI is deployed reliably and responsibly,” he said.
The report also finds that high-growth companies are responding to ongoing uncertainty with more decisive action than their peers.
Almost three-quarters (73%) of global executives say they are diversifying their supplier and trading partner networks to combat tariffs. In China, 48% reported similar adjustments.
Growth leaders are also restructuring their product portfolios and increasing compliance spending. Some 59% say they are increasing investments in risk management and regulatory compliance, while 78% say they are changing their strategies in response to developments in U.S.-China relations, significantly outpacing less agile competitors.
As disruption becomes the norm, the report suggests that competitive advantage depends less on surviving shocks and more on how quickly and boldly companies adapt to them.
