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Executive Insights:

As organizations move beyond acceptance of AI value, enterprise-wide execution is the new imperative

AI investment continues to accelerate, with organizations projecting an average spend of $207 million in the coming year—nearly double the forecast from twelve months ago. Yet as capital flows in, the critical imperative is no longer about securing funding or proving AI’s value, but about executing at scale. This report sheds light on the rate of AI adoption, how to increase ROI as investments scale, the increasing focus on human oversight of AI agents, and ways to ensure trust and risk mitigation are embedded in your AI strategy.

How much has AI adoption increased?

Two years ago, most organizations were experimenting with AI agents, with adoption limited to only 11% of companies and the primary focus on pilot programs. By mid-2024, the number of organizations implementing AI agents grew threefold to 33%. Now, more than half (54%) of organizations have integrated AI agents into their operations, with competitive advantage hinging on the ability to effectively reengineer processes, empower the workforce, and manage risk. 

How can you realize ROI as you increase your AI investments?

While 79% of leaders confirm AI will remain a top investment priority even amid economic uncertainty, realizing return on that investment through scaling of use cases is proving more difficult (according to 65% of survey respondents, up from 33% last quarter). However, with 54% of organizations now actively deploying AI agents, the next step is for the technology to be embedded into day-to-day operations. Already, 73% of respondents report using AI to automate workflows across multiple functions, and 53% say they are using AI to route critical information between teams. Clearly, organizations recognize the need to integrate AI into their main operations or their investments may fall short of delivering value across the enterprise.

To what degree does AI success hinge on the “human in the loop”?

As organizations deepen their AI experience, a clearer, more effective operating model is taking shape—one that is AI-enabled but led by humans. The majority of leaders (57%) now believe people should manage and direct AI agents. However, given concern over employee skill gaps as a barrier to ROI (as reported by 62% of respondents vs. 25% last quarter), upskilling the current workforce has emerged as a key priority for 87% of leaders. And for entry-level employees, the most sought-after skills are adaptability and continuous learning, according to 83% of leaders surveyed -- a major shift from the previous focus on technical programming skills.

As AI scales, how can you ensure trust and risk mitigation are at the forefront?

With AI moving into the core of business operations, governance has been elevated and is considered integral to scaling responsibly and earning stakeholder trust. From a focus on ethical standards, frequent audits, and robust monitoring in the early days of AI governance, leaders are now stressing the importance of data protection, privacy, and risk management in shaping AI strategies (according to 91% of leaders). Requiring human review of agentic output is reported by 63% of leaders, and 47% are collaborating with established, reliable technology partners to develop their AI solutions.

Industry focus: AI is impacting core infrastructure across sectors

What are the key findings from the Q1 2026 AI Pulse Survey?

1

AI agent deployment is now core.
54%
of organizations are actively deploying AI agents across core operations, marking a clear shift from pilots to enterprise-wide adoption.

2

Scaling, not spend, is the top barrier to ROI.
65%
of leaders cite scaling AI use cases and 62% identify workforce skills gaps as top challenges in demonstrating ROI—reinforcing that execution, not funding, is the key to success.

3

Human‑directed AI takes the lead.
57%
of executives now expect people to manage and direct AI agents, signaling a shift toward human accountability, judgment, and oversight as AI takes on a larger role in daily operations. 

4

Workforce upskilling is mission critical.
87%
of organizations are prioritizing workforce upskilling and reskilling as AI strategies pivot toward enablement. For entry-level positions, adaptability and continuous learning (83%) now outweigh technical skills (67%) as the most valued attributes. 

5

Trust and risk management are prerequisites for scale.
91%
of respondents say data security, privacy, and risk will be integral to AI strategy in the next six months—making human review, data quality, and tight controls foundational to scaling responsibly. 

Dive into our thinking:

AI Q1 2026 Pulse Survey: Key findings

AI Agent deployment crosses the tipping point

Investment in AI is at its highest level yet and is continuing on a sharp upward trajectory. The imperatives now are reimagining entire areas of the business, ensuring teams have the right skills, establishing robust trust and risk management, and making an operational shift so people are managing and directing AI, rather than the converse.

Steve Chase

Global Head of AI & Digital Innovation at KPMG

AI spend signals executive conviction

Governance becomes a prerequisite for scale

INDUSTRY FOCUS

AI’s Next phase: From scale to sustainable operations

Across banking, asset management and private equity, and technology, AI adoption continues to mature beyond enterprise‑wide execution and into sustained operational use. Organizations are integrating AI agents more deeply into core workflows, while placing greater emphasis on the foundations that support scale — including data readiness, governance, and workforce capability. In Q1 2026, progress is increasingly defined by how effectively organizations balance continued deployment with the oversight, talent models, and controls needed to deliver consistent, value over time.

In banking’s AI race, guardrails are the growth strategy.

As banks increasingly invest in AI, governance becomes essential to scaling responsibly. According to the KPMG US Q1 2026 AI Pulse – Banking survey, banks are prioritizing human oversight and data discipline to manage an ever-evolving risk and regulatory environment. With a clear focus on upskilling workforces to unlock AI's value, the industry is recalibrating skills and governance frameworks to responsibly scale the technology.
Download PDF

Asset managers and private equity firms expand AI investment and agent deployment, emphasizing governance and talent readiness

Asset managers and private equity leaders are committing more capital to AI while continuing to focus on how it is implemented at an enterprise scale, alongside continued pressure to demonstrate value and return on investment. As AI agents move into operational workflows, governance, oversight, and human involvement are becoming central to AI strategy, driven by data security, privacy, and risk considerations. At the same time, firms are adjusting talent strategies by prioritizing adaptability, continuous learning, and premium AI skills as they scale AI in a controlled and deliberate manner.
Download PDF

For technology companies, AI is no longer a bet on ambition, it’s a test of how the enterprise actually runs.

AI adoption has entered a phase where speed and responsibility are no longer sequential choices. As agentic systems become embedded across functions, technology leaders are accelerating deployment while confronting the harder work of execution — reimagining workflows, redefining human roles, and building guardrails around increasingly autonomous systems. According to the KPMG US Q1 2026 AI Pulse – Technology survey, the industry that created the AI-enabled economy is now operating under simultaneous pressure as client zero: capture the growth opportunity today, while ensuring governance, oversight, and organizational readiness keep pace.
Download PDF

Banking

In banking’s AI race, guardrails are the growth strategy.

As banks increasingly invest in AI, governance becomes essential to scaling responsibly. According to the KPMG US Q1 2026 AI Pulse – Banking survey, banks are prioritizing human oversight and data discipline to manage an ever-evolving risk and regulatory environment. With a clear focus on upskilling workforces to unlock AI's value, the industry is recalibrating skills and governance frameworks to responsibly scale the technology.
Download PDF

Asset Management & Private Equity

Asset managers and private equity firms expand AI investment and agent deployment, emphasizing governance and talent readiness

Asset managers and private equity leaders are committing more capital to AI while continuing to focus on how it is implemented at an enterprise scale, alongside continued pressure to demonstrate value and return on investment. As AI agents move into operational workflows, governance, oversight, and human involvement are becoming central to AI strategy, driven by data security, privacy, and risk considerations. At the same time, firms are adjusting talent strategies by prioritizing adaptability, continuous learning, and premium AI skills as they scale AI in a controlled and deliberate manner.
Download PDF

Technology

For technology companies, AI is no longer a bet on ambition, it’s a test of how the enterprise actually runs.

AI adoption has entered a phase where speed and responsibility are no longer sequential choices. As agentic systems become embedded across functions, technology leaders are accelerating deployment while confronting the harder work of execution — reimagining workflows, redefining human roles, and building guardrails around increasingly autonomous systems. According to the KPMG US Q1 2026 AI Pulse – Technology survey, the industry that created the AI-enabled economy is now operating under simultaneous pressure as client zero: capture the growth opportunity today, while ensuring governance, oversight, and organizational readiness keep pace.
Download PDF

Looking ahead: How can organizations turn AI investment into sustained enterprise value?

As AI investments increase, the path to success hinges on more than just technology—people, trust, and risk management are crucial. Expanding successfully from pilot projects to AI integration across core operations will depend on re-engineering operating models for scale; prioritizing workforce upskilling and adaptability; instituting robust governance for data privacy and security; and ensuring human oversight as AI agents are further embedded into corporate teams. 

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Welcome to our series of quarterly reports on Artificial Intelligence, where we explore the latest trends, advancements, and impacts shaping the world of AI.

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Industry focus: AI is impacting core infrastructure across sectors

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Steve Chase
Global Head & US Vice Chair – AI & Digital Innovation, KPMG LLP

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