89% of Big-Company CEOs Plan to Grow Headcount Despite AI Boom

By Daniel Okafor

Eighty-nine percent of CEOs at major U.S. corporations expect to increase overall headcount over the next three years, even as they pour money into artificial intelligence. That figure comes from a survey released today by accounting firm KPMG, which contacted the CEOs of 400 major U.S. companies with at least $500 million in annual revenue.

The number cuts against the popular narrative that AI replaces workers. Just 53% of CEOs said they are planning AI-related workforce reductions in some areas. The rest of the data points the other way.

What are CEOs actually doing with AI?

CEOs increasingly view AI as something to integrate into their processes, rather than a way to cut labor costs, the survey found. The mechanism shows up in four numbers:

• About eight in 10 CEOs said AI has led their companies to reconsider how they develop employees.
• Three-quarters said they have reassessed the skills needed for entry-level positions.
• 86% said they are "redesigning roles, career paths, and team structure to reflect human-AI collaboration."
• 83% said they are focused on retaining or retraining "high-potential talent," while 79% are hiring new talent with AI and tech capabilities.

The pattern is consistent. Money moves toward retraining and restructuring, not toward layoffs.

Are the AI investments paying off?

Not yet, by the CEOs' own account. Some 84% list AI as a top investment priority over the next three years. The returns, however, are still materializing.

Roughly 40% of CEOs said AI agents had made "significant" improvements to their company's performance. Only 9% described the current impact of agentic AI as "transformational."

Costs compound the problem. Roughly half of CEOs described managing AI-related costs as "mostly or very challenging." And 81% anticipate that AI will have a greater impact on their margins than labor costs over the next five years — a striking reversal of the usual cost hierarchy.

More than 70% said a lack of "reliable AI access and advancement" was the biggest disruption risk facing their companies.

How confident are CEOs overall?

Broadly optimistic, at home. A clear majority expressed confidence in their company (84%), their industry (82%), and the broader U.S. economy (79%).

The global picture is gloomier. Only 64% expressed a positive outlook on the global economy. Nearly 80% said inflationary pressures will continue to affect their company over the next three years.

The survey's core message for planners: AI budgets are rising faster than AI results, and hiring plans are holding anyway. If the 89% follow through, the next three years will test whether retraining can absorb what automation displaces.