C-suite leaders eye AI, cost cuts & flexible work by 2026

International Workplace Group said senior executives plan to prioritise cost control, investment in AI and more flexible working arrangements as they look ahead to 2026.

The workspace provider released findings from its State of the C-Suite research, which surveyed 1,200 US-based C-suite leaders at companies that already operate hybrid or flexible models. The results point to a mix of optimism about the economy and continued pressure on operating budgets.

According to the research, 95% of CEOs said they felt optimistic about 2026. A further 84% said they expected global economic conditions to improve.

At the same time, every CEO surveyed said controlling costs would be essential for success in 2026. CFOs reported budget reductions averaging 10%.

Technology pressures

The research also broke out responses from technology leaders, including CTOs, CISOs and CIOs. Respondents cited cybersecurity risks as their biggest challenge, with 31% selecting it. Employee burnout, recruiting talent and rising technology or service costs each stood at 26%.

Rising labour costs and upskilling staff each registered at 23%, according to the findings. Productivity and talent retention also featured as major concerns, at 21% and 20% respectively.

Looking to 2026, technology leaders ranked controlling operational costs and supporting employee experience through a "robust tech stack" as joint top priorities, each at 41%. "Shoring up security" followed at 40%.

The report also found that more than nine in ten technology leaders invest in infrastructure for hybrid or decentralised work. Nearly nine in ten agreed that technology advances and AI will make flexible work critical for collaboration, training and upskilling.

Across the wider C-suite sample, leaders reported a focus on technology rollout and productivity. Implementing new technology ranked as a key area for 39% of respondents. Increasing productivity followed at 32%.

AI investment

The findings point to AI and automation spending as a major board-level theme for 2026. The research said 83% of c-suite leaders will prioritise investment in AI and automation, with 82% selecting it. It also said 82% will prioritise productivity.

International Workplace Group also referenced separate figures on AI use in Singapore's workforce. It said 73.8% of workers already use AI at work, and 85% of those users report measurable improvements in productivity, time savings and work quality.

It cited comments attributed to Prof. Ho Teck Hua, President of NTU and Executive Chairman of AI Singapore, on the potential macroeconomic impact. The statement said Singapore's productivity growth could reach 5% if every worker has access to a personal AI assistant, compared with 2.4% annual growth projected from 2016 to 2033.

Flexible work

The research said flexible working arrangements remain a key cost and workforce lever for senior leaders. It found 83% of CEOs enable teams to work from multiple locations.

CEOs cited several factors for adopting multi-location working. Shorter commutes ranked first at 43%. Access to wider talent pools, improved employee satisfaction, higher productivity and lower real estate costs each registered at 37%.

The study also points to changing workplace commitments. It found 56% of CEOs plan to move to shorter-term leases in 2026, while 54% plan to use co-working and flexible workspace memberships.

"There is no longer a binary choice between work from home and work from the office," said Mark Dixon, Founder and CEO, International Workplace Group.

International Workplace Group linked the findings to its own expansion. It said its global network includes more than one million rooms across 121 countries. It said it opened 624 locations in 2024, and that in the first half of 2025 it signed and opened more new locations than in its first decade of operations.

"Productivity and performance come down to good management of people," said Dixon.