Despite economic uncertainty, U.S. CEOs say they are spending heavily on AI this year

U.S. chief executives are continuing to ramp up investments in artificial intelligence and pursue mergers and acquisitions, even as their confidence in the broader U.S. and global economic outlook remains muted, according to a new study by KPMG.

The firm’s 2026 U.S. CEO Outlook Pulse Survey,reveals that while CEOs are optimistic about the prospects of their own businesses and industries, they remain cautious about macroeconomic growth over the next year.

The report finds that, 86% of CEOs are confident in the growth prospects of their industry and 83% in their own companies, but confidence drops significantly when it comes to the broader economy. Just 55% expressed confidence in the U.S. economy, while 53% believe the global economy will grow in the year ahead.

“AI is accelerating the cycle of innovation, giving CEOs more agility to navigate uncertainty and seize opportunities in the market,” said Tim Walsh. 

He added that organisations are already deploying AI tools to inform supply chain strategy, strengthen cybersecurity defenses and enhance workforce productivity.

However, Walsh noted that the true value of AI will emerge when companies move beyond experimentation and embed the technology into new business models and operating frameworks.

AI spending accelerates

Despite ongoing debate around generative AI’s near-term impact, CEOs remain bullish on its long-term potential. The survey found that 77% of executives believe generative AI may have been overhyped in the past year but underhyped in terms of its disruptive impact over the next five to ten years.

This conviction is reflected in capital allocation decisions. Nearly 80% of CEOs are investing at least 5% of their total capital budgets in AI, while 41% are allocating 10% or more. Key investment areas include workforce upskilling, accelerating innovation, and integrating AI more deeply into core business operations.

At the same time, executives are still navigating the workforce implications of the technology. Two-thirds (67%) of CEOs say they have only an initial understanding of how AI will reshape jobs and career paths, and most organisations have yet to fully redefine roles in response to AI-driven transformation.

Deal activity expected to rise

Alongside AI investment, corporate leaders are also preparing for an active year of dealmaking. The survey indicates that 63% of CEOs expect their organisations to actively pursue mergers, acquisitions or strategic partnerships in 2026, suggesting that market uncertainty has not dampened appetite for growth opportunities.

Executives are also reshaping supply chains to respond to evolving trade policies, tariffs and regulatory shifts. More than 70% of CEOs reported making strategic adjustments over the past year to improve supply chain agility, including deploying AI for trade compliance and tariff mitigation strategies.

Cybersecurity moves to the top of the agenda

As AI adoption accelerates, cybersecurity risks are emerging as a major concern for corporate leaders. The study found that 67% of CEOs plan to increase cybersecurity investment, citing the growing threat of AI-assisted cyberattacks.

Top risks identified by executives include AI-powered malware, data privacy breaches and AI-enabled phishing attacks, while more than half of CEOs also flagged the potential threat posed by quantum computing in the future.

Talent and leadership challenges

While AI is driving innovation, it is also intensifying competition for specialised talent. About 61% of CEOs said they are concerned about their ability to recruit the technical AI expertise they need, prompting many companies to focus on upskilling existing employees.

Organisations are also beginning to prepare managers for the AI era. Nearly 44% of CEOs are piloting leadership development programs to equip managers with AI-related capabilities, although leaders remain wary that overreliance on AI could limit critical thinking and reduce early-career learning opportunities.

The survey draws on insights from 100 CEOs leading U.S.-based companies with annual revenues above $500 million, including more than one-third whose firms generate over $10 billion annually.

Overall, the findings suggest that while economic uncertainty persists, U.S. business leaders view AI and strategic acquisitions as central to sustaining growth and competitiveness in the years ahead.