Nearly 9 In 10 CEOs Expect To Hire More Workers Despite AI. But The Jobs They Need Are Changing.

Nearly nine in 10 U.S. chief executives expect to increase their workforce over the next three years despite growing concerns about artificial intelligence replacing workers, according to a new survey that also found companies are changing the skills they look for when hiring.

The 2026 KPMG U.S. CEO Outlook, released Thursday, found that 89% of CEOs anticipate increasing their companies' headcount, even as 53% plan to reduce employment in certain areas in response to AI.

The findings are based on responses from 400 CEOs at large U.S. companies and show how businesses are approaching recruitment, employee training and workforce planning as artificial intelligence becomes more widely integrated into their operations.

Most executives are expecting relatively modest hiring increases. About 60% anticipate expanding their workforce by less than 5% over the next three years, while 26% expect growth of between 6% and 10%.

Only 2% foresee increasing headcount by between 11% and 25%. At the same time, 79% of CEOs said their long-term workforce strategies include hiring people with AI and technology capabilities. Another 83% are focusing on retaining and retraining existing employees, rather than relying entirely on recruiting new workers.

The survey also found that 86% are redesigning roles, career paths and team structures to accommodate collaboration between employees and AI systems.

The changes extend to workers entering the labor market for the first time. Three-quarters of CEOs said integrating AI into their businesses has made them reconsider the skills required for entry-level positions, while 81% have changed how they approach employee training and development.

The findings come as employers increasingly incorporate generative AI tools into tasks such as software development, data analysis, customer service and administrative work.

The survey did not identify which specific occupations are expected to experience the largest hiring increases or job cuts. It also did not establish how many positions would ultimately be created or eliminated because of AI.

Instead, respondents described their expectations for overall staffing and the changes they are making to their workforce strategies.

A shortage of workers with suitable skills remains one of the biggest concerns for executives. About 60% of CEOs identified gaps in workforce skills as a major challenge facing their organizations, while 55% cited the difficulty of training employees to work with AI systems. Nearly half, or 49%, pointed to attracting and retaining talent as another major workforce concern.

The findings suggest that businesses are focusing on both recruiting workers with new technical capabilities and developing the skills of employees already on their payrolls.

Beyond hiring, CEOs are continuing to increase their investment in artificial intelligence. According to KPMG's October 15 announcement, 84% of U.S. CEOs consider AI a top investment priority over the next three years, while 65% expect to allocate at least 10% of their capital budgets to the technology over the next year.

Companies are also reporting varying levels of progress in adopting AI agents, which can carry out tasks and workflows with differing degrees of autonomy.

Only 9% of CEOs said AI agents have had a transformational effect on their organizations so far. Another 39% reported significant improvements in efficiency or growth, while 43% described more moderate benefits from targeted uses.

The survey also examined how quickly executives expect their AI spending to produce financial returns. About 14% believe their investments will pay off within six months to a year, while 68% anticipate returns within one to three years. A further 13% expect the process to take between three and five years.

However, the expense of deploying AI remains a concern. Half of the CEOs surveyed said managing AI implementation costs was mostly or very challenging. Meanwhile, 81% believe rising AI costs will have a greater effect on corporate profit margins than labor costs over the next five years.

Tim Walsh, KPMG's U.S. chair and CEO, said companies are moving beyond using AI primarily to improve efficiency and are increasingly considering how the technology affects their business models and workforces.

"The focus on AI innovation has shifted from efficiency gains to how these investments will shape their business models, workforce and growth," Walsh said in the company's announcement.

The survey also found that 84% of CEOs were confident about their own companies' growth prospects over the next three years, while 79% expressed confidence in the U.S. economy.