Nine out of 10 CEOs plan on hiring more despite AI boom

A recent survey conducted by accounting firm KPMG reveals that 89% of CEOs from major U.S. corporations plan to hire more employees over the next three years, despite the growing adoption of artificial intelligence. Conducted on 400 companies with annual revenues exceeding $500 million, the survey indicates that CEOs now view AI as a tool to enhance their processes rather than a means to reduce labor costs.

Eight out of ten CEOs reported that AI has prompted them to reconsider how they develop employees, while three-quarters acknowledged that they have reassessed the skills required for entry-level positions. An additional 86% stated that they are redesigning roles, career paths, and team structures to accommodate human-AI collaboration. Similarly, 83% are prioritizing the retention or retraining of high-potential talent, while 79% are actively hiring new employees with AI and technology skills.

However, despite their positive outlook on AI and its potential benefits, only 53% of CEOs anticipate workforce reductions in AI-related areas. The majority of CEOs remain committed to investing in AI, with 84% listing it as a top investment priority over the next three years. Yet, the full impact of these investments is yet to be realized, as only 9% consider the current influence of agentic AI to be "transformational."

Managing AI-related costs remains a significant concern for CEOs, with half of them describing it as "mostly or very challenging." Moreover, 81% expect AI to have a more substantial impact on their margins than labor costs within the next five years. Over 70% of CEOs highlighted a lack of "reliable AI access and advancement" as the most significant disruption risk facing their companies.

Despite these challenges, the CEOs surveyed expressed a generally optimistic outlook. An overwhelming majority (84%) expressed confidence in their company, 82% trust their industry, and 79% have faith in the broader U.S. economy. However, the global economic outlook was more pessimistic, with only 64% foreseeing a positive trajectory. Additionally, nearly 80% of the CEOs surveyed indicated that inflationary pressures will continue to affect their company over the next three years.