Through Marketplace’s Economic Pulse series, we hear views on the economy from a range of perspectives — from high school counselors to construction business owners, grocery store clerks, and more. Today, we’re focusing on a survey of how big-time CEOs are feeling about this moment of tariffs and the promise and peril of artificial intelligence. The audit, tax, and advisory firm KPMG is out with their latest CEO Outlook survey.
“Marketplace Morning Report” host David Brancaccio spoke with KPMG’s U.S. CEO, Tim Walsh, to unpack the findings of the survey. The following is an edited transcript of their conversation.
David Brancaccio: You know, I do it anecdotally. I talk to the CEOs I can talk to, and I have been getting this year an impression that it’s a little hard to predict where policy is going in America. Do you see that reflected, this uncertainty?
Tim Walsh: We do see that, and that’s certainly what I’m hearing, as well. There’s certainly a level of disruption, and, as you say, uncertainty that CEOs are dealing with. I think the primary factor there that certainly is coming up most significantly is around tariffs. And it’s not the change of tariffs, but the fact that tariffs are changing, and then sometimes changing again. And so companies are clearly needing to very, very quickly model their cost structures, and then get it after their options in terms of changing supply chains and/or doing cost-cutting, or and lastly, of course, understanding how much the consumer might be able to absorb as it relates to price increases.
Brancaccio: What percentage of the CEOs surveyed think they might have to pass along some of these costs to the people they sell to?
Walsh: You know, I would say that it’s high on the list of things and options. And I would say the majority of companies, depending on the level of tariff that they’re facing — the more significant obviously the tariff, the more you know, the more likely it is that the consumer will need to absorb some of that.
Brancaccio: Last year, 70% of the CEOs you surveyed thought that this artificial intelligence technology would not lead to a big surge in layoffs, that it might increase productivity and so forth. Is that how they’re feeling this year?
Walsh: It is, David. Certainly, CEOs are experiencing the efficiencies, both from investing in AI and specifically in investing in agents. But, on the other hand, they’re also seeing growth opportunities with that. And so I look at the labor force that we have, and I do know that there’ll be some changes as it relates to that mix of labor force, but overall, I don’t see that the number of employees coming down at an organization like KPMG.
Brancaccio: Now, concern about cyber security issues among CEOs, we’re talking coming off a month where Jaguar Land Rover of Britain, the factories were shut down because of some kind of cyberattack. That must scare the daylights out of businesses more widely.
Walsh: That is an understatement. The cybercriminals are able to now employ AI, as well, and so they can do more damage. And one really significant risk that CEOs are dealing with is the fact that AI and agents specifically, are becoming the inside threat actors. The one positive I would leave you with, though: It’s not all negative. The good news is that, you know, you can fight AI risk with AI.
