AI Investment Continues as KPMG Survey of 100 CEOs Reveals Outlook

Many executives at large companies believe that the adoption of generative artificial intelligence (AI) in the workplace has been significantly overstated over the past year, according to a KPMG United States survey.

However, three-quarters of CEOs stated that the actual impact and “disruptive potential” of AI over the next five to ten years will likely be underappreciated.

Many companies are transitioning from pilot phases to AI implementation, with investment occurring in a “disrupted work environment”.

Between late January and mid-February, KPMG US conducted a survey of 100 large company CEOs based in the United States.

The survey addressed various topics, including AI adoption, employee recruitment plans, and economic conditions.

One in four CEO respondents believes an AI investment bubble exists. However, AI remains a major spending category, with nearly 80 per cent of CEOs prioritising it.

In fact, surveyed CEO respondents stated they would allocate at least five per cent of their capital budgets to AI this year.

Approximately two-thirds of surveyed CEOs reported increasing cybersecurity spending amid growing concerns about AI-related risks.

Six out of ten surveyed CEOs prioritise AI spending to build worker skills.

Around half of surveyed CEOs are using these funds to accelerate innovation and integrate technology into daily operations.

Whilst AI training is potentially good news for workers concerned about job displacement, approximately one in five surveyed CEOs still anticipate workforce reductions over the coming year.

When asked about AI’s impact, around half of surveyed CEOs anticipated moderate or significant hiring.

Meanwhile, only nine per cent of surveyed CEOs anticipated that the technology would result in workforce reductions.