Business leaders across the globe are struggling to catch their breath. Executives are dealing with a volatile stock market, extreme tariff uncertainty, and a litany of other issues that have sprung up over the past few months.
Constantine Alexandrakis, CEO of Russell Reynolds Associates, has been advising corporate boards and CEOs for decades. He says economic and geopolitical uncertainty are top of mind for leaders, according to the firm’s latest report on C-suite priorities in 2025. “There haven’t been widespread policy changes in this country like this in a long time,” he says.
Alexandrakis spoke with Fortune about what CEOs fear most right now, how shaky markets are causing leaders to lean into AI, and why top executives are making so many trips to Washington.
This interview has been edited and condensed for clarity.
Fortune: What is keeping CEOs up at night?
Constantine Alexandrakis: CEOs are worried. They’re spending a lot of time in Washington, as you know, to try to plead their case. And it’s not just the uncertainty. It’s actually the uncertainty about the uncertainty. CEOs are starting to see real impact on their businesses. They’re starting, behind closed doors, to be more open about their concerns regarding some of the tariff policies. There haven’t been widespread policy changes in this country like this in a long time. [Corporate leaders are] trying to quickly get government relations expertise that they don’t have.
They’re also thinking about—if they’re doing business in Asia—how do they pivot around some of the restrictions that are happening? There’s a realization that the reality is here, that it’s going to impact us in different ways, and [CEOs are] tactically trying to figure out how to adjust.
But there is a view that maybe this is a moment that can actually jump start what we’ve all been playing with, in terms of AI, to find new efficiencies.
What would finding new efficiencies with AI look like?
If revenue is becoming unpredictable, that means that the expense side of the financials needs to be more carefully managed. Are there ways to use artificial intelligence to jump start productivity gains that can aid in a time of crisis?
There’s emerging consensus that you can get, across corporate functions, up to 25 or 30% productivity gains by implementing agents, and the benefits that those can generate. In every situation where the economy gets pressured, there’s a window of innovation and change that gets escalated. So just like in the pandemic, where the use of remote working and other communication technologies was sped up, CEOs are saying: “Is this an opportunity to speed up the adoption of AI to help us on the expense line?”
Are we seeing an era of the “CEO as Diplomat?”
Almost every CEO I talked to is taking a trip through [Washington D.C.], and our government relations search team is busier than it ever has been. [Leaders] are also navigating the other side of [political issues] whether it’s in Canada or China or so on.
Are government relations search teams in overdrive right now?
They definitely are. Somebody asked me, “I mean, is that normal? Doesn’t that happen after every new president is elected?” And I’d say, “I mean, to some degree, but not noticeable. And this is noticeable. This is notable.”
What makes a good government relations specialist, and where do you find them?
The high level things that I’d say are: people who understand how to get to the right leaders in Washington, how to get into the White House, have relationships with current people of influence in the administration, and can build a strategy around how to connect the company’s issues with the issue of a day, and push the company’s interests in that respect.
What’s challenging for the C-suite level talent you work with right now?
The biggest challenge if you’re a senior executive is: is this moment of uncertainty one where you make a change? Whether you’re a CEO going into a new company or a senior leader, it’s a little harder right now to project where the economy is going, what the resources are that you’d have access to in a new job, how far the investments slow down, and how long the supply chain shocks are going to last.
[Uncertainty] is hurting people’s willingness to be mobile. It’s not stopping hiring in its tracks, but it’s creating more questions when someone is being recruited for something.
What are the best leaders doing right now to navigate this time of uncertainty?
Generally, it’s three things: One is exuding grit, which is about being focused on executing strategy. Number two is exuding confidence [while also] being humble about the challenges that we have in the environment. The third is going outward.
The best leaders during these times turn [focus] outward and stay really close to their customers, go out and spend more time with them than they would. It’s meant to counteract the negative impact of being too inwardly focused at a time where the world is shifting and you don’t want to miss any of your customers’ moves.
Do you think corporate culture will come out of this period fundamentally different?
I think it’s an opportunity for companies to come out stronger in their culture, depending on how they navigate the uncertainty together. The businesses that are being certain and non-volatile, and are providing a safe haven for their employees, compared to the uncertainty and volatility they see in the outside world, will emerge stronger. And their cultures will emerge stronger.
