A global survey of 1,300 CEOs, including 400 in the U.S., exposes a gap between companies’ AI ambitions and the actual results they are achieving. While 84% of executives rank artificial intelligence as their top investment priority for the next three years, only 9% say AI-driven systems are producing meaningful transformations in their organizations. The findings, published in a KPMG report released October 15, indicate that most firms remain in the early phases of AI adoption despite substantial financial commitments and strategic emphasis.
Current AI outcomes are limited. Nearly 4 in 10 reported “significant improvements in efficiency or growth” as a result of AI agents, and 43% saw “moderate impacts with targeted use cases.” Meanwhile, 65% plan to dedicate at least 10% of their capital budget to AI in the coming year. Instead, inflation, geopolitical instability, and cybersecurity threats dominate immediate concerns, overshadowing AI’s long-term potential.
According to Tim Walsh, CEO of KPMG U.S., AI’s purpose has expanded beyond cost reduction to reshaping business models, workforce structures, and growth strategies. However, this transition introduces new challenges. 85% of CEOs anticipate cybercrime will harm their organizations within the next three years—a greater concern than inflation, geopolitical tensions, or rapid technological shifts. The report highlights a critical imbalance: executives are accelerating AI adoption, but their current systems, including cybersecurity measures, governance frameworks, and workforce skills, are not keeping pace.
89% of U.S. CEOs intend to increase hiring over the next three years, with skill shortages and AI training identified as major obstacles. 81% say AI integration has forced them to rethink employee development, and 75% acknowledge it is changing entry-level job requirements. Yet a separate Culture Amp survey reveals a disconnect: while 85% of employees report encouragement to experiment with AI, only 58% have leaders explain the company’s adoption rationale. This misalignment between executive strategy and employee understanding could hinder progress.
Economic uncertainty also looms large. Although 64% of CEOs remain confident in global economic growth, 78% expect inflation to damage their businesses over the next three years. These financial pressures may constrain AI expansion as firms weigh new investments against existing financial demands. Additionally, 79% foresee geopolitical conflicts affecting profitability, adding further risk to AI-driven initiatives.
Despite these challenges, executives show no intention of scaling back. More than 6 in 10 U.S. leaders said they were confident their firms were moving at the right pace or ahead of the curve in terms of AI development. Another 32% said they were cautiously optimistic, and 4% said they were “concerned and struggling to keep up.” This confidence suggests AI remains a core strategic focus, even if its full impact will take years to materialize. For now, the emphasis is on strengthening the foundational elements, cybersecurity, workforce training, and governance, to support AI integration rather than expecting immediate, sweeping transformations.
Confidence in AI Progress Among U.S. Executives Contrasts with Employee Understanding Gaps
A majority of U.S. leaders expressed confidence in their companies’ AI advancement, with over 6 in 10 stating their firms were moving at the right speed or ahead of industry trends, according to KPMG data. Meanwhile, many employees remain unclear about the broader goals behind AI adoption, despite widespread encouragement to test the technology.
