Despite concerns of a bubble, CEOs say they are spending big on AI this year

"Three-quarters of large-company CEOs said generative AI might have been overhyped in the past year, but its true impact and "disruptive potential" over the next five to 10 years is likely underappreciated. The sentiment about deploying AI is most certainly accelerating, with many organizations moving beyond pilot stages into implementation."

"Nearly 80% of chiefs said they will allocate at least 5% of their capital budgets to AI this year. About two-thirds of leaders said they are boosting their cybersecurity spending amid growing fears about risks associated with AI. Six in 10 CEOs said they are prioritizing AI spending on building workers' skills."

"While AI training is likely welcome news to workers worried about AI taking their work, about one in five CEOs still expects to cut jobs over the next year. Asked about the effect of AI, about half expected modest or significant hiring, while just 9% said they expect the technology to result in job reductions."

A KPMG survey of 100 large US company CEOs reveals that while three-quarters believe generative AI has been overhyped, they expect significant disruptive impact over the next five to 10 years. Nearly 80% of CEOs plan to allocate at least 5% of their capital budgets to AI in the current year. Two-thirds are increasing cybersecurity spending due to AI-related risks. Six in ten CEOs prioritize AI spending on worker skill development, while half focus on innovation and operational integration. Approximately half of CEOs expect modest to significant hiring from AI, though one in five still anticipates job cuts. The sentiment shows organizations moving beyond pilot stages into full implementation despite acknowledging past hype.

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