Middle Market Firms Prioritize AI and Growth Over Macro Uncertainty

Rather than retrenching, business leaders are accelerating capital allocation toward long-term goals. The focus has shifted from defensive positioning to aggressive internal development, with 54% of companies identifying AI and technology expansion as their primary investment priority for 2026. This represents a strategic migration from experimental cybersecurity pilots to core operational integration.

Ken Gavrity, President of Key Commercial Bank, attributes this trend to a shift in corporate DNA. Executives are increasingly confident in their ability to navigate volatility by controlling the variables they can influence: talent acquisition and technological infrastructure. This resilience is particularly pronounced in the manufacturing and technology sectors, which currently lead the market in growth optimism.

While macroeconomic caution remains at 51%, the appetite for expansion is undiminished. Companies with positive outlooks are significantly more likely to pursue external capital, signaling a readiness to scale. Although M&A activity has seen a measured pause, organizations led by proactive leadership teams are positioning for a surge in deal-making throughout 2027 and 2028. This growth strategy is supported by a simultaneous commitment to workforce reskilling, as firms recognize that the efficacy of new AI tools is tethered directly to the talent capable of deploying them.