KPMG warns 45% of execs halted AI agents due to cost

KPMG's latest enterprise AI report, published August 2026, indicates a sharp correction in the AI agent market. Nearly half (45%) of executives surveyed admitted to pulling back on deployments of AI agents—autonomous systems capable of executing tasks without human intervention—primarily due to cost overruns and unclear returns on investment.

The findings suggest the AI bubble may be deflating faster than anticipated. While 2025 saw aggressive adoption of AI agents for tasks like customer service, document processing, and procurement, the 2026 data reveals a reality check: integration costs, maintenance overhead, and scalability challenges have outweighed early-stage benefits for many organizations. KPMG surveyed C-level executives across 500 Fortune 500 companies, with infrastructure and labor costs cited as the top pain points.