According to Inc, a new SHRM survey of CEOs reveals a clear but tense priority list for 2026. A staggering 87% of CEOs believe AI-driven upskilling will be widespread next year, with AI adoption itself ranking as their top goal—above hiring and even revenue growth. However, over 80% of these leaders expect labor costs to rise, and 75% say that will likely drive layoffs or restructuring. James Atkinson, SHRM’s VP of thought leadership, noted CEOs are under pressure to adopt AI but are now seeing it as a value-add, not just a cost-cutter. He also pointed to inflation and tariffs as key factors in recent job cuts, adding that economic uncertainty makes planning for 2026 exceptionally difficult.
CEO Priorities Clash
Here’s the thing: this data paints a picture of leaders trying to steer in two directions at once. On one hand, they’re all-in on the AI hype train, finally recognizing they need to bridge the gap between rolling out fancy tech and actually training their people to use it. That’s a big shift. For years, it was just about buying the software. Now, there’s a “strong consensus” that upskilling is critical. But on the other hand, the old-school business pressures haven’t gone away. Rising wages? That’s still a problem they want to solve, and the answer, for 3 out of 4 CEOs, might be cutting jobs or reshuffling the org chart. It’s a classic case of wanting to invest in the future while simultaneously cutting costs in the present. Can you really do both effectively?
The Contractor Economy Booms
And this is where the real structural change happens. The report suggests these pressures will create “new job opportunities” through contractors, freelancers, and gig work. That’s corporate-speak for a more flexible, and frankly, less secure, workforce. The demand for third-party workers is being driven by a simple fact: companies are struggling to attract top talent. Only about a quarter of CEOs said attracting new, talented workers was a top goal. Why fight for expensive full-time employees when you can plug gaps with contractors and pour your savings into AI systems? It’s a brutal calculus, but it’s the one being made. This trend has been building for years, but AI and economic anxiety are about to supercharge it.
The AI Gap Is Real
So, the big takeaway isn’t just that CEOs love AI. We knew that. It’s that they’re acutely aware of the “AI gaps” now. The gap between their excitement and their employees’ anxiety or skepticism. The gap between buying the tool and building the skill. Pivoting to see AI as a “value” tool instead of just a “cost-cutting” tool is a necessary mental shift if they want those projects to actually succeed. But let’s be real. In a environment where 75% are eyeing layoffs, how much genuine “value-add” training feels secure to a worker? The challenge for 2026 won’t just be implementing AI. It’ll be implementing it while your workforce is terrified of the restructuring happening in the next cubicle over. That’s the tightrope they have to walk.
