Iran war, AI erode employers’ expansion plans, data suggests

A quarterly survey of 750 CFOs indicates CEO expansion plans are cooling due to artificial intelligence and uncertainty from the Iran war. The Q1 2026 data shows approximately 34% of CEOs are considering how to incorporate AI into their hiring processes. Additionally, 1 in 5 companies now assess AI skills during job interviews.

The survey data comes from the Duke/Federal Reserve CFO survey, which previously projected significant AI-related job transitions. The cooling of expansion plans represents a shift from previous quarters when hiring intentions were more robust. Companies cite both AI integration considerations and geopolitical instability as factors influencing their hiring decisions.

The data suggests AI is becoming a more significant factor in workforce planning decisions. The combination of technological change and geopolitical uncertainty appears to be creating a more cautious hiring environment. These findings align with broader trends showing increased corporate focus on AI integration across business functions.