KPMG Survey Shows AI is Driving Hiring Surge & Capital Spend

AI is reshaping corporate investment strategies at an unprecedented pace, with new research from KPMG revealing that businesses are pouring significant resources into AI technology while simultaneously planning to expand their workforces.

The findings challenge assumptions that AI adoption inevitably leads to job cuts, instead painting a picture of transformation rather than replacement.

The KPMG US CEO Outlook Pulse survey, which polled 100 CEOs from large American companies, found that fewer than one in 10 business leaders are planning to reduce their headcounts as a result of their AI investments.

More strikingly, more than half of those surveyed say they expect AI to increase their hiring efforts in 2026, while 36% anticipate no change.

This shift reflects a fundamental recalibration in how businesses think about the relationship between technology and human capital.

Tim Walsh, CEO of KPMG US, refers to this as the "labour cost margin", telling Fortune that the question he asks for any business engagement is: "What is my mix of labour? What's my mix of technology? And what's the overall cost of delivering that engagement?"

AI drives new hiring categories

According to Tim, AI is already transforming the way KPMG approaches recruitment, creating entirely new job categories that did not exist before widespread AI adoption.

The firm is now hiring technologists in ways it never did previously, alongside what Tim describes as "orchestrators", people who manage substantial portions of workflow to ensure completion, accuracy and appropriate outputs.

As company investments in AI go up, Tim says: "I'm going to be able to run a lot more volume through my business in ways that I couldn't before."

This trend extends beyond KPMG. IBM has revealed plans to triple its entry-level hiring across 2026, though the nature of these roles has fundamentally changed.

Nickel LaMoreaux, Chief Human Resources Officer of IBM, says that while AI has changed the way companies hire, employees can bring new value to their organisation.

Speaking at Charter's Leading with AI summit, she tells attendees: "The entry-level jobs that you had two to three years ago, AI can do most of them. So, if you're going to convince your business leaders that you need to make this investment, then you need to be able to show the real value these individuals can bring now. And that has to be through totally different jobs."

Capital allocation reaches significant levels

As AI growth continues to scale, there are increasing pressures for companies to invest in the technology, which Tim describes as "dizzying".

According to KPMG, nearly 80% of CEOs say 5% of their total capital budgets are being allocated to AI, while 35% put the number between 11% and 20%.

"It's stressful if you're not investing, if you're not keeping up. Because if you're not keeping up, you have the risk of losing market share," Tim says.

These investment levels represent a substantial commitment to AI infrastructure, training and implementation.

However, the pressure to invest does not guarantee immediate returns, creating tension for business leaders who must balance innovation with proven results.

Uncertainty remains about long-term impact

Despite these investments, research suggests there is still uncertainty surrounding the long-term impact of AI on business performance.

According to PwC, CEOs are reporting their lowest level of revenue confidence in five years, partially due to rapid technological change.

Of those surveyed, only 12% of CEOs shared that AI had delivered cost savings and revenue benefits over the past year.

This gap between investment and measurable return could indicate that businesses are still in the early stages of AI integration, or that the technology requires longer timelines to demonstrate value.

Tim acknowledges this uncertainty, saying: "There is no doubt that every single layer within the labour pool is going to be disrupted. But anyone who tells you what it's going to do or knows what the shape of it is going to be isn't being truthful, because it's unclear at the moment."

The survey findings suggest that the AI revolution is unfolding as a transformation of work rather than a simple automation story, with businesses betting that increased technological capability will create opportunities for expanded operations rather than workforce reduction.