Business Leaders Turn To AI And Cost Discipline To Drive Growth In 2026

This rising confidence is paired with clear, disciplined execution. According to new research from IWG, a unanimous 100% of CEOs say cost control is essential, and CFOs are trimming budgets by an average of 10%.

Cost cutting measures

To cut costs, leaders are leveraging the power of AI and flexible work solutions to operate more efficiently, which will enable investments in other parts of their business. AI can save businesses 20-40% in operational costs, while flexible working can reduce organisations’ real estate costs by 55%, making them both cost-effective ways to fuel growth.

In addition to cost savings, four-fifths of all C-Suite executives (83%) say that investment in AI/automation (82%) and productivity (82%) will be prioritised in 2026. AI can drive notable productivity gains; previous IWG research found that 78% of workers report AI saves them time, with an average of 55 minutes gained per day or nearly the equivalent of a full extra day of productivity per week.

Work from...

Companies of all sizes are empowering their employees to work across multiple locations, splitting their time between local workspaces, a central office and home. This is not simply a change in how people work, rather a rebalancing of where economic value is created. The days of needing to be tethered to a central HQ are far gone. Technology has changed everything, effectively removing the need for daily long and expensive commutes.

2026 is the year of “Work from an office”, not “The office”, with 83% of CEOs already enabling teams to work from multiple locations.

Primary reasons include shorter commutes (43%), wider talent pools (37%), employee happiness/employee preference (37%), workforce productivity (37%), and the ability to take office or co-working space in areas with lower real estate costs (37%). In 2026, 56% of CEOs will seek shorter-term leases or opt for co-working solutions/membership to a network of flexible workspaces (54%).

“There is no longer a binary choice between work from home and work from the office,” said Mark Dixon, founder and CEO of International Workplace Group.

“By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximise productivity, increase employee satisfaction and retention, and drive better ROI.

"And while the business benefits are clear, additional research conducted by IWG shows employees can also save up to $30,000 per year by working closer to home in high quality, professional workspaces in the heart of their local communities.

“Productivity and performance come down to good management of people,” continued Dixon. “As leaders navigate AI, cost savings and retention – noting the high costs of attrition – the benefits of flexible work are allowing them to shore up their businesses and prepare for growth.”

Additional findings, including insights by title, are available here.