CEOs Plan Headcount Increases Despite AI Adoption

Despite the growing adoption of artificial intelligence (AI), a significant majority of CEOs at major U.S. corporations plan to increase their workforce. According to a survey released by accounting firm KPMG, 89% of CEOs expect their company's overall headcount to grow over the next three years.

The survey, which polled CEOs from 400 major U.S. companies with at least $500 million in annual revenue, suggests that business leaders increasingly view AI as a means to enhance processes rather than solely as a method for reducing labor costs. Approximately eight in ten CEOs indicated that AI has prompted their companies to rethink employee development strategies, and three-quarters have reassessed the skills needed for entry-level positions.

Furthermore, 86% of CEOs reported redesigning roles, career paths, and team structures to facilitate human-AI collaboration. A similar percentage (83%) are focused on retaining or retraining high-potential talent, while 79% are actively hiring new employees with AI and technology expertise. Only 53% are planning AI-related workforce reductions in certain areas.

While CEOs anticipate continued substantial investment in AI, with 84% listing it as a top investment priority for the next three years, the tangible returns are still materializing. Only about 40% of CEOs reported significant improvements in company performance due to AI agents, and just 9% described the current impact of agentic AI as transformational. Concerns about AI adoption costs are also prevalent, with roughly half finding them challenging.

Overall, the surveyed CEOs expressed optimism about their companies (84%), industries (82%), and the broader U.S. economy (79%). However, their outlook on the global economy was more reserved, with 64% holding a positive view. Nearly 80% anticipate that inflationary pressures will continue to affect their businesses over the next three years.