KPMG Survey: Optimism Meets Execution as Chicago Business Leaders Eye 2026 Growth Through M&A and AI

NEW YORK — Chicago business leaders are confident in their organization’s growth trajectory in 2026, with plans to hire, expand their commercial real estate footprint, pursue dealmaking, and scale AI – while bolstering governance and supply‑chain resilience, according to a new study released today by KPMG LLP, the U.S. audit, tax, and advisory firm.

The KPMG 2026 Perspectives: Local Insights from Chicago report shows Chicago leaders are sharpening their strategic priorities: investing in talent, updating operating models, modernizing tech capabilities, and reinforcing organizational resilience as they prepare for the year ahead.

“Chicago’s business climate is recalibrating for speed and trust” said Jeff King, KPMG Chicago Managing Partner. “Business leaders want faster decisions and dependable outcomes, and executives are concentrating on the fundamentals that strengthen their businesses and position them to grow. The result is a market where execution—not headlines—wins.”

The KPMG 2026 Perspectives: Local Insights from Chicago report surveyed 102 business leaders (82% C-Suite; all VP-level and above) at companies with annual revenues of more than $50 million on the key challenges and opportunities in driving business growth in the city. Key findings are highlighted below.

Chicago business leaders’ confidence is fueling growth, with expanded hiring and an active M&A pipeline poised to drive economic impact.

KING: “Chicago business leaders are feeling a momentum shift, and they are making moves to build on it by sharpening hiring plans, rethinking their office space, and pursuing deals where data indicates real upside.”

• 98% are confident in their company’s growth; 91% are confident in their industry’s growth and 86% are confident in the city’s growth in 2026.
• 81% of executives plan to increase their employee headcount this year. However, 14% said they are planning reductions.
• 64% of business leaders said they are planning to increase their company’s commercial real estate footprint, and only 7% said they were planning a decrease.
• Among Chicago locations, the Loop, Fulton Market, and West Loop are top choices for new spaces designed to enhance in-office collaboration, with half planning to expand in these neighborhoods. Meanwhile, 16% said they are planning to shift operations to suburban locations.
• 80% of business leaders surveyed said they are planning acquisitions in 2026, with 42% said they are targeting the first half of the year, and 34% are waiting until the second half of the year to complete deals. 7% said they are planning to be acquired.

Chicago’s growth engine is holding steady, with companies managing volatility through disciplined pricing, stronger operations, and targeted investments that are sustaining momentum across the market.

KING: “What stands out in this year’s data is how consistently Chicago companies are building resilience into their operations. Leaders aren’t just reacting to volatility—they’re designing organizations that can absorb it and still move forward.”

• Business leaders said customer demand has remained resilient under tariffs, with 61% reporting sales increases. However, 13% of business leaders have seen deferred sales, with 12% reporting declines; 15% saw no change.
• Over the next 12 months, 68% of business leaders said they expect their margins to increase. 64% expect their margins to increase by up to 50%
• 87% of business leaders reported an operational impact from market uncertainty. 13% said it was a significant impact, and 24% reported a minimal impact.
• Top threats to 2026 growth as reported by business leaders include macro/market conditions (59%); AI integration, such as governance/upskilling, (49%;) cybersecurity (35%); and geopolitics/tariffs (20%).
• Business leaders are increasing their risk‑mitigation investments: 75% are investing in AI workforce readiness and governance controls; 73% in cyber resilience; 43% in supply‑chain continuity; and 36% in talent strategies.
  

AI in Chicago is shifting from experimentation to real operational use, with companies rethinking how work is organized and how teams develop the skills needed to use AI effectively.

KING: “Chicago’s edge isn’t hype, it’s execution. Companies are taking a disciplined approach to AI, prioritizing the capabilities and controls that let teams use these tools with confidence and real business purpose.”

• In 2026, 86% of Chicago business leaders say their organization will increase AI use.
• Despite ongoing economic uncertainty, 92% agree that AI will be a top investment priority for their organizations in 2026.
• 93% are using AI for candidate screening, including 81% who are revising job descriptions to include AI competencies, and 88% are upskilling current employees.
• Operating models are shifting to agentic AI and 82% believe agentic AI will transform how work is organized.
• 82% expect business teams to manage AI agents’ performance; 84% anticipate employees outside tech roles to manage multiple agents.
• Workforce planning is adapting to automation, with 71% anticipating reductions as AI scales and 58% expecting entry‑level hiring to decrease.
• Organizations are preparing their people for the transition, with 92% providing AI education and training across the workforce.

Chicago is leaning into emerging technologies, with quantum poised as the next productivity unlock. Organizations expect to invest in or pilot quantum in 2026, and adoption is already underway.

KING: “Quantum is a capability shift. By preparing through targeted pilots, quantum‑ready data, and strong controls, Chicago organizations are positioning themselves to take advantage when enterprise-grade quantum technology is ready. It’s incredible to see the momentum, which will reinforce Chicago's position as a global leader in the space as the technology matures.”

• 90% of organizations are likely to invest in or pilot quantum technologies this year.
• 13% of respondents say they are already piloting or deploying quantum solutions.
• The city’s scale supports frontier tech adoption, with roughly seven in ten respondents working at companies with 501+ employees and about four in ten reporting annual revenue of $500 million or more.

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