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Policy in motion: Insights to navigate what's next

Stay ahead of policy changes that shape the economy, influence business strategy, and impact supply chain, workforce, technology, and risk decisions.

How does policy change shape the economy and decision making?

Public policy no longer moves in predictable cycles. Rapid shifts in trade, monetary and fiscal policy, regulation, and technology oversight are reshaping economic conditions and redefining how organizations plan, invest and compete. Each policy decision—whether tied to tariffs, tax, labor or technology—carries implications for growth, pricing, risk, and capital allocation.

KPMG Policy in Motion connects policy intelligence to economic and operational impact, helping business leaders understand how policy shifts influence markets and plan accordingly. By linking policy developments to real business decisions, executives can anticipate disruption, evaluate exposure, and lead with foresight in a constantly changing environment.

How can business leaders prepare for continuous policy change?

Preparing for economic and policy forces reshaping business

Policy shifts are no longer isolated compliance events—they influence economic outlooks, cost structures, investment decisions, and competitive dynamics across industries. Policy in Motion equips executives and boards to understand how global and US policy shifts cascade through the economy and impact operations, workforce planning, technology investment, and risk management. In a world of constant change, readiness isn’t episodic—it’s ongoing.

In an environment where change never stops, readiness is no longer periodic—it’s perpetual.

Explore insights that help you:
  • Understand how policy shifts influence economic conditions and market dynamics
  • Align enterprise strategy with evolving fiscal, trade, and regulatory frameworks
  • Plan for policy-driven impacts on growth, pricing, investment, and operations
  • Strengthen forecasting, compliance, and risk management amid uncertainty

How does policy change impact business functions and industries?

Policy shifts rarely stay confined to regulation—they ripple through the economy and into the way companies operate. The functions below show where those changes are already reshaping cost structures, talent strategies, technology investment, and enterprise risk.

Supply chain

Supply chain resilience: How are leaders strengthening agility amid trade and tariff volatility?

Trade policy and tariffs now affect pricing strategy, capital allocation, supplier risk, and working capital exposure. Supply chain strategy has become a lever of economic resilience. Leaders are investing in forecasting driven by AI, scenario modeling, and network redesign to reduce margin shock and improve agility under uncertainty.

89%

of US chief executive officers (CEOs) expect tariffs to significantly impact performance over the next three years

source: 2025 KPMG US CEO Outlook

85%

are shifting toward domestic or near-shore sourcing

source: 2025 KPMG US CEO Outlook

65%

of organizations report strong pressure to reduce operating costs

source: KPMG Disruption Survey

61%

report strong pressure to increase resilience/continuity

source: KPMG Disruption Survey

57%

report strong pressure to improve speed/agility

source: KPMG Disruption Survey

Impact to industries

Policy volatility is redefining operating assumptions across sectors:

1

Industrial manufacturing: Tariff volatility, reshoring incentives, and rising domestic energy and labor costs are compressing margins and complicating capital allocation decisions, forcing tighter alignment between policy shifts and supply chain design.

2

Automotive: Trade fragmentation and geopolitical shifts are increasing supplier risk and cost variability, accelerating regional network strategies while exposing embedded dependencies in global sourcing models.

3

Consumer and retail: Import cost inflation—86 percent of CEOs plan price increases—tied to tariff policy is directly pressuring pricing strategy and consumer demand, intensifying the need for cost-to-serve transparency and inventory discipline.

5 Strategic shoring challenges – solved

Discover how relocating supply chain operations closer to end customers can enhance resilience, agility, and stability.
Read more

How KPMG helps

Tariff exposure analysis, AI-enabled forecasting, digital supply chain visibility, and reshoring strategy alignment.

Image of Chris McCarney
Chris McCarney
Principal, Supply Chain & Procurement Leader, KPMG LLP

Strategic implications

Trade policy and tariffs now affect pricing strategy, capital allocation, supplier risk, and working capital exposure. Supply chain strategy has become a lever of economic resilience. Leaders are investing in forecasting driven by AI, scenario modeling, and network redesign to reduce margin shock and improve agility under uncertainty.

89%

of US chief executive officers (CEOs) expect tariffs to significantly impact performance over the next three years

source: 2025 KPMG US CEO Outlook

85%

are shifting toward domestic or near-shore sourcing

source: 2025 KPMG US CEO Outlook

65%

of organizations report strong pressure to reduce operating costs

source: KPMG Disruption Survey

61%

report strong pressure to increase resilience/continuity

source: KPMG Disruption Survey

57%

report strong pressure to improve speed/agility

source: KPMG Disruption Survey

Impact to industries

Impact to industries

Policy volatility is redefining operating assumptions across sectors:

1

Industrial manufacturing: Tariff volatility, reshoring incentives, and rising domestic energy and labor costs are compressing margins and complicating capital allocation decisions, forcing tighter alignment between policy shifts and supply chain design.

2

Automotive: Trade fragmentation and geopolitical shifts are increasing supplier risk and cost variability, accelerating regional network strategies while exposing embedded dependencies in global sourcing models.

3

Consumer and retail: Import cost inflation—86 percent of CEOs plan price increases—tied to tariff policy is directly pressuring pricing strategy and consumer demand, intensifying the need for cost-to-serve transparency and inventory discipline.

Featured insight

5 Strategic shoring challenges – solved

Discover how relocating supply chain operations closer to end customers can enhance resilience, agility, and stability.
Read more

How KPMG helps

How KPMG helps

Tariff exposure analysis, AI-enabled forecasting, digital supply chain visibility, and reshoring strategy alignment.

Image of Chris McCarney
Chris McCarney
Principal, Supply Chain & Procurement Leader, KPMG LLP

Human capital

Human capital strategy: How are leaders reshaping the workforce for an AI-driven economy?

Workforce strategy is increasingly influenced by economic signals, AI regulation, and productivity expectations. Leaders are redesigning workforce models around skills, digital capacity, and compliance—not simply headcount.

The deeper shift: Workforce architecture now integrates human and digital labor. Leaders must account for compressed skill cycles, governance of AI-enabled decisions, and the economic trade-offs of automation.

81%

of CEOs say upskilling to work with AI will directly affect performance, with 73 percent prioritizing retention and reskilling

source: 2025 KPMG US CEO Outlook

67%

say employees feel left behind by the pace of change

source: KPMG 2026 US Technology Survey report

61%

of organizations report strong pressure to address skills gaps or talent shortages

source: KPMG Disruption Survey

Impact to industries

Policy volatility is redefining operating assumptions across sectors:

1

Financial services: Persistent regulatory oversight and AI adoption within a permanently regulated environment are increasing demand for compliance-capable, AI-literate talent aligned to evolving supervisory expectations.

2

Healthcare and life sciences: AI-enabled care expansion and tightening data privacy rules are increasing governance complexity while economic pressure heightens the need for productivity gains without compliance risk.

3

Technology and telecom: AI deployment in engineering and product development is accelerating workforce redesign, as firms balance innovation speed with rising policy scrutiny and online safety expectations.

4

Public sector: Fiscal constraints and modernization mandates are driving large-scale workforce transformation, requiring measurable upskilling without expanding cost structures.

Leveraging AI for workforce optimization and growth

Discover how AI can supercharge your workforce, boost productivity, improve the employee experience, and foster continuous learning.
Read more

How KPMG helps

Workforce planning, people analytics, job architecture redesign, and AI-enabled talent strategies.

Image of Katie Dahler
Katie Dahler
Principal, Human Capital Advisory Leader, KPMG US

Strategic implications

Workforce strategy is increasingly influenced by economic signals, AI regulation, and productivity expectations. Leaders are redesigning workforce models around skills, digital capacity, and compliance—not simply headcount.

The deeper shift: Workforce architecture now integrates human and digital labor. Leaders must account for compressed skill cycles, governance of AI-enabled decisions, and the economic trade-offs of automation.

81%

of CEOs say upskilling to work with AI will directly affect performance, with 73 percent prioritizing retention and reskilling

source: 2025 KPMG US CEO Outlook

67%

say employees feel left behind by the pace of change

source: KPMG 2026 US Technology Survey report

61%

of organizations report strong pressure to address skills gaps or talent shortages

source: KPMG Disruption Survey

Impact to industries

Impact to industries

Policy volatility is redefining operating assumptions across sectors:

1

Financial services: Persistent regulatory oversight and AI adoption within a permanently regulated environment are increasing demand for compliance-capable, AI-literate talent aligned to evolving supervisory expectations.

2

Healthcare and life sciences: AI-enabled care expansion and tightening data privacy rules are increasing governance complexity while economic pressure heightens the need for productivity gains without compliance risk.

3

Technology and telecom: AI deployment in engineering and product development is accelerating workforce redesign, as firms balance innovation speed with rising policy scrutiny and online safety expectations.

4

Public sector: Fiscal constraints and modernization mandates are driving large-scale workforce transformation, requiring measurable upskilling without expanding cost structures.

Featured insight

Leveraging AI for workforce optimization and growth

Discover how AI can supercharge your workforce, boost productivity, improve the employee experience, and foster continuous learning.
Read more

How KPMG helps

How KPMG helps

Workforce planning, people analytics, job architecture redesign, and AI-enabled talent strategies.

Image of Katie Dahler
Katie Dahler
Principal, Human Capital Advisory Leader, KPMG US

Technology

Technology strategy: How are leaders turning policy pressure into competitive advantage?

Technology investment is no longer insulated from policy and economic forces. AI regulation, cyber oversight, data privacy mandates, and infrastructure incentives shape where and how capital is deployed.

The leadership challenge is dual: accelerate innovation while maintaining governance discipline. Modernization strategies that ignore regulatory alignment stall. Those that embed governance into design scale more effectively.

74%

of US CEOs rank AI as a top investment priority despite economic volatility, while data readiness is the top barrier to AI implementation

source: 2025 KPMG US CEO Outlook

95%

of US executives expect revenue growth over the next two years, however legacy systems and compliance complexity continue to slow execution

source: KPMG 2026 Technology Survey report

68%

of organizations report strong pressure to accelerate innovation

source: KPMG Disruption Survey

62%

of organizations report strong pressure to change business strategy in response to economic and regulatory disruption

source: KPMG Disruption Survey

Impact to industries

1

Financial services: AI adoption must operate within stringent compliance frameworks, where regulatory scrutiny directly influences model governance, auditability, and deployment speed.

2

Industrial manufacturing and energy: Rising energy demands from automation and AI, combined with reshoring and capital timing uncertainty, are reshaping modernization priorities under policy pressure.

3

Technology and telecom:  As leaders in AI innovation, firms face intensified cyber targeting and regulatory oversight, raising expectations for governance and platform resilience.

4

Healthcare: Digital innovation must balance operational efficiency gains with evolving privacy regulation and oversight of AI-enabled clinical tools.

Cloud and data strategies for AI-first organizations

Unlock the full potential of AI with a unified Cloud, Data and AI (CDAI) strategy.
Read more

How KPMG helps

AI-governed modernization roadmaps, tech-risk integration, data governance, and ROI-focused portfolio enhancement.

Image of Sachin Satija
Sachin Satija
Principal, CIO Advisory, KPMG US

Strategic implications

Technology investment is no longer insulated from policy and economic forces. AI regulation, cyber oversight, data privacy mandates, and infrastructure incentives shape where and how capital is deployed.

The leadership challenge is dual: accelerate innovation while maintaining governance discipline. Modernization strategies that ignore regulatory alignment stall. Those that embed governance into design scale more effectively.

74%

of US CEOs rank AI as a top investment priority despite economic volatility, while data readiness is the top barrier to AI implementation

source: 2025 KPMG US CEO Outlook

95%

of US executives expect revenue growth over the next two years, however legacy systems and compliance complexity continue to slow execution

source: KPMG 2026 Technology Survey report

68%

of organizations report strong pressure to accelerate innovation

source: KPMG Disruption Survey

62%

of organizations report strong pressure to change business strategy in response to economic and regulatory disruption

source: KPMG Disruption Survey

Impact to industries

Impact to industries

1

Financial services: AI adoption must operate within stringent compliance frameworks, where regulatory scrutiny directly influences model governance, auditability, and deployment speed.

2

Industrial manufacturing and energy: Rising energy demands from automation and AI, combined with reshoring and capital timing uncertainty, are reshaping modernization priorities under policy pressure.

3

Technology and telecom:  As leaders in AI innovation, firms face intensified cyber targeting and regulatory oversight, raising expectations for governance and platform resilience.

4

Healthcare: Digital innovation must balance operational efficiency gains with evolving privacy regulation and oversight of AI-enabled clinical tools.

Featured insight

Cloud and data strategies for AI-first organizations

Unlock the full potential of AI with a unified Cloud, Data and AI (CDAI) strategy.
Read more

How KPMG helps

How KPMG helps

AI-governed modernization roadmaps, tech-risk integration, data governance, and ROI-focused portfolio enhancement.

Image of Sachin Satija
Sachin Satija
Principal, CIO Advisory, KPMG US

Cyber and technology risk

Cyber and technology risk: How are leaders managing exposure in a policy-driven digital economy?

Cyber and technology risk are enterprise-level governance priorities shaped by regulation, geopolitics, and digital dependence. Resilience is no longer aspirational—it is measurable and scrutinized.

Boards increasingly view cyber maturity as an indicator of operational continuity and enterprise value. Leaders must embed cyber governance into enterprise risk management—not treat it as an isolated IT function.

82%

of CEOs cite cyber risk as a top governance concern

source: 2025 KPMG US CEO Outlook

Many US organizations still experience weekly IT disruptions tied to foundational system weaknesses

source: KPMG 2026 US Technology Survey report

61%

percent of organizations report strong pressure to increase resilience and continuity in response to disruption, reinforcing the growing importance of cyber and operational readiness

source: KPMG Disruption Survey

Impact to industries

1

Financial services: Heightened regulatory expectations and third-party risk exposure increase focus on cyber resilience and elevate the economic consequences of disruption.

2

Industrial manufacturing and energy: Automation expansion and operational technology exposure heighten cyber vulnerability as reshoring and infrastructure shifts increase system interdependence.

3

Consumer and retail: Expanding digital commerce ecosystems increase exposure to fraud and data compromise under stricter privacy expectations and margin pressure.

4

Technology and telecom: Elevated policy scrutiny and persistent targeting require disciplined governance as cyber maturity increasingly influences enterprise trust and valuation.

Proactive cybersecurity strategies for CISOs

Protect critical assets and drive innovation

Build cyber resilience, mitigate risk, and enable business growth in an AI-driven threat landscape.
Read more

How KPMG helps

Cyber risk governance | regulatory alignment | IT/OT resilience | board-level risk integration

Image of Matthew P. Miller
Matthew P. Miller
Principal, Advisory, Cyber Security Services, KPMG US

Strategic implications

Cyber and technology risk are enterprise-level governance priorities shaped by regulation, geopolitics, and digital dependence. Resilience is no longer aspirational—it is measurable and scrutinized.

Boards increasingly view cyber maturity as an indicator of operational continuity and enterprise value. Leaders must embed cyber governance into enterprise risk management—not treat it as an isolated IT function.

82%

of CEOs cite cyber risk as a top governance concern

source: 2025 KPMG US CEO Outlook

Many US organizations still experience weekly IT disruptions tied to foundational system weaknesses

source: KPMG 2026 US Technology Survey report

61%

percent of organizations report strong pressure to increase resilience and continuity in response to disruption, reinforcing the growing importance of cyber and operational readiness

source: KPMG Disruption Survey

Impact to industries

Impact to industries

1

Financial services: Heightened regulatory expectations and third-party risk exposure increase focus on cyber resilience and elevate the economic consequences of disruption.

2

Industrial manufacturing and energy: Automation expansion and operational technology exposure heighten cyber vulnerability as reshoring and infrastructure shifts increase system interdependence.

3

Consumer and retail: Expanding digital commerce ecosystems increase exposure to fraud and data compromise under stricter privacy expectations and margin pressure.

4

Technology and telecom: Elevated policy scrutiny and persistent targeting require disciplined governance as cyber maturity increasingly influences enterprise trust and valuation.

Featured insight

Proactive cybersecurity strategies for CISOs

Protect critical assets and drive innovation

Build cyber resilience, mitigate risk, and enable business growth in an AI-driven threat landscape.
Read more

How KPMG helps

How KPMG helps

Cyber risk governance | regulatory alignment | IT/OT resilience | board-level risk integration

Image of Matthew P. Miller
Matthew P. Miller
Principal, Advisory, Cyber Security Services, KPMG US

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Ready to keep your business strategy ahead of—and outpacing—uncertainty?

Let’s discuss how KPMG can help you navigate policy shifts and economic volatility with confidence.

Image of Diane C. Swonk
Diane C. Swonk
Chief Economist, KPMG US
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John P. Gimigliano
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