CHICAGO – Feb. 18, 2025 – Despite concerns around the city and state’s economy, business leaders in Chicago are strategically planning to hire talent and increase their office footprint in 2025, while exhibiting a growing willingness to embrace AI as well as flexible work schedules to recruit and retain talent, according to a new study released today by KPMG LLP, the U.S. audit, tax, and advisory firm.
The KPMG 2025 Perspectives: Local Insights from Chicago report revealed that 84% of city business leaders expect an increase in hiring this year, with 71% planning to increase their office footprint. Business leaders also overwhelmingly (91%) believe the city is well-positioned to attract talent and new businesses, including start-ups, in the next 18 months. Notably, the report also found that business leaders are embracing AI to maintain a competitive edge, with 82% of leaders reporting that generative AI is a top investment priority.
"Chicago's business leaders are not just optimistic—they're trailblazing," said Travis C. Hunter Jr., KPMG Chicago Office Managing Partner. "They’re innovating to stay ahead, offering flexible work arrangements while investing in generative AI.”
The KPMG 2025 Perspectives: Local Insights from Chicago report surveyed 100 business leaders (65% 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 are confident in the growth prospects for their companies against a backdrop of challenging economic and market conditions.
Hunter: "Though there are headwinds like interest rates and inflation, Chicago business leaders are bullish on the growth prospects of their companies and both the local and U.S. economy."
Business leaders in Chicago eyed strategic, transformational M&A deals – with the overwhelming majority planning to do so in early 2025.
Hunter: "Going into 2025, business leaders were getting ready to come off the sidelines, with a significant number of business leaders planning to make strategic transformation deals. This reflects the city's dynamic business environment and its leaders' commitment to growth and innovation.”
GenAI is a top investment priority as Chicago business leaders predict AI will have a significant impact on their organization; they also are increasing their investments in cybersecurity to protect their operations and intellectual property from AI threats.
Todd Lohr, KPMG Head of Ecosystems—Advisory: “Chicago is embracing generative AI as a catalyst for innovation, with an overwhelming majority of business leaders viewing it as a top investment priority. While this technology promises to reshape roles and operations, there is a growing focus on implementing AI responsibly with robust governance frameworks. As a hub for cutting-edge solutions, Chicago companies are also fortifying their cybersecurity defenses against AI threats. This forward-looking approach to AI adoption and risk management will be crucial for the city's long-term leadership in technological innovation."
With employee engagement and recruiting and retaining top talent seen as big challenges, Chicago business leaders are open to alternate work arrangements including 4-day work weeks.
Hunter: "Chicago business leaders are thinking outside the box to increase employee engagement and recruit and retain top talent. From considering 4-day work weeks to GLP-1 coverage, business leaders are intent on enhancing their organization’s employee experience."
About KPMG LLP
KPMG LLP is the U.S. firm of the KPMG global organization of independent professional services firms providing audit, tax and advisory services. The KPMG global organization operates in 142 countries and territories and has more than 275,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
KPMG is widely recognized for being a great place to work and build a career. Our people share a sense of purpose in the work we do, and a strong commitment to increasing access to education and opportunity, advancing mental health, and supporting community vitality. Learn more at www.kpmg.com/us.
To learn more or to arrange an interview with KPMG Chicago Leaders, please contact Harvey Henao (hhenao@kpmg.com).
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