KPMG Survey: NYC Business Leaders Show 10-Point Confidence Gap Between Business and City as AI and Talent Pressures Intensify

NEW YORK, February 10, 2026 — New York City business leaders are entering 2026 with near-universal confidence in their own growth, but a 10-point gap between confidence in the growth prospects of their companies and the city itself, according to a just-released survey from KPMG LLP, the U.S. audit, tax and advisory firm.

KPMG 2026 Perspectives: Local Insights from New York City reveals that despite navigating rapid AI integration and commercial real estate pressures, business leaders see themselves as the primary drivers of optimism across the five boroughs, with 66% planning to increase hiring in 2026. The majority, 86%, are prioritizing talent with AI skills – yet 57% are simultaneously reducing entry-level positions due to AI and automation.

“We're seeing a confidence gap that signals an undercurrent of uncertainty about what’s ahead,” said Yesenia Scheker-Izquierdo, KPMG New York City Managing Partner. “But that gap also creates opportunity. New York remains essential to the talent, businesses and innovation that drive global growth. Now is the moment for business and city leaders to work together to strengthen the conditions that will keep New York a vibrant place for years to come.”

The KPMG 2026 Perspectives: Local Insights from New York City report surveyed 103 business leaders in New York City (76% 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. 

Despite broader economic uncertainty, New York City’s business leaders are investing aggressively in growth, including acquisitions, commercial real estate and talent.

Scheker-Izquierdo: "The most successful organizations don't wait for clarity—they create momentum without it. What we're seeing is a fundamental belief from business leaders that building for the future New York City today matters more than hedging against uncertainty."

• 96% of NYC business leaders are confident in their company’s growth prospects for 2026, while their confidence in the growth prospects of the city itself lags 10-points (86%).

• 81% of NYC business leaders expect to make acquisitions, with 58% anticipating that they will undertake acquisitions that have a significant impact. The majority (62%) will take place in the first half of 2026.

• Business leaders expect a meaningful economic boost from America's 250th anniversary celebrations—projecting median growth of 7.2% (average of 9.4%) from the festivities alone.
• In a vote of confidence in physical presence, 70% of NYC business leaders plan to increase their commercial real estate footprint in the next 12–18 months. Key decision factors include cost of leasing and property taxes (29%), sustainability goals (24%), and the availability of flexible/shared workspaces (23%).
• Creating spaces for connection, collaboration and friendship is an important part of talent strategy for 90% of NYC business leaders, and 95% are encouraging and facilitating non-work-related breaks and events to foster stronger relationships at work.

• 65% of NYC business leaders are increasing healthcare benefits to attract talent, with only 3% reducing coverage due to rising costs. Alternative healthcare models (e.g., telehealth, direct primary care) are being explored by 14%.

Companies are decentralizing AI governance, giving oversight responsibilities to employees across the business.

Scheker-Izquierdo: "The AI opportunity has never been more acute. In 2026, however, a refreshed model of accountability will emerge where every employee managing AI becomes a frontline enforcer of both performance and ethics.”

• 89% of NYC business leaders believe that agentic AI will have a fundamental impact on their organizations, and 80% believe that employees in the business will be responsible for managing agents rather than HR or IT departments.
• As a result, close to half (42%) are creating new roles focused on AI oversight and ethics.

AI skills surpass traditional qualifications as NYC companies restructure entry-level hiring while expanding headcount.

Scheker-Izquierdo: "AI fluency has become table stakes in New York City, and organizations are fundamentally reimagining how humans and machines collaborate. The leaders in this transformation will be the ones who don't just acquire the best technology and talent—but figure out how to make them exponentially more effective, together."

• 86% of NYC business leaders say that their organizations will prioritize hiring workers with AI skills over those without, and 88% are actively revising job descriptions to include AI competencies.
• Over half (57%) of NYC business leaders are reducing entry-level hiring due to AI and automation.
• While 85% are investing in upskilling current employees to reduce external hiring needs, 93% are also providing AI education and training across the workforce.
• 66% anticipate an increase in overall hiring in 2026 while 11% are already reducing headcount through automation.

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