On February 5, 2026, KPMG LLP released a new study indicating that San Francisco business leaders are entering the year with confidence in the city’s business climate and a focus on growth through investments in artificial intelligence, talent development, and commercial real estate.
The findings from the KPMG 2026 Perspectives: Local Insights from San Francisco report show that nearly 95% of surveyed business leaders rate the city’s business climate as favorable for growth compared to other major metropolitan areas. Additionally, 93% expressed confidence in San Francisco’s growth prospects for the coming year. The report suggests that continued momentum will depend on how quickly organizations can integrate AI, upskill their workforce, and transform local real estate into spaces that foster collaboration and culture. According to KPMG LLP, these factors are seen as key drivers for future success.
Chris Cimino, KPMG San Francisco Managing Partner, said, “San Francisco’s business leaders are moving past the noise and making definitive moves toward executing on growth. What we’re seeing is a city that’s leveraging its inherent advantages and pairing that with aggressive AI integration, along with a renewed focus on the spaces and experiences that bring people together.” Cimino also addressed perceptions of decline by stating, “The narrative has been about decline, but the reality on the ground is completely different. Companies are looking at San Francisco and seeing opportunity to establish themselves at the center of the most important technological shift in a generation. This is not a city in decline – it’s a city that’s reloading for the future.”
The survey included nearly 100 business leaders—78% of whom were C-suite executives—at companies with annual revenues exceeding $50 million. Key findings indicate strong optimism around mergers and acquisitions activity for 2026; half of respondents plan to pursue acquisitions during the year. The majority intend to act within the first half of 2026.
AI adoption emerged as another central theme. According to Cimino, “Companies are redefining growth – not just by adopting new technology but by reimagining their entire business model around AI. Those who master both technology and transformation will set the pace for the next decade.” The report found that almost all respondents expect increased use of AI in their organizations next year.
Cimino further commented on workforce trends: “AI-savvy talent is the true edge, and in a world of constant change, continuous learning is essential.” The study also highlights shifts in commercial real estate strategies among local businesses as they seek to create collaborative workspaces aligned with evolving talent needs.
