Three Trends Shaping Business Strategy in 2026: Insights from Audit Partners

In a period defined by technological disruption, evolving risks, and continued uncertainty, U.S. public companies are assessing priorities and adapting their operations. Audit partners, through their work with companies across industries and market capitalizations, have a unique vantage point on how businesses are responding to emerging challenges and opportunities.

Drawing on the insights of hundreds of audit partners from leading firms, the Center for Audit Quality’s (CAQ) Audit Partner Pulse Survey provides a real-time view of the trends shaping business decision-making, risk management, and corporate strategy.

The latest edition highlights shifting approaches to legislative and regulatory developments, the continued prioritization of AI, and the growing maturity of AI governance programs at public companies. Together, these findings offer public company stakeholders a snapshot of the forces influencing businesses today, and the potential implications for the broader economy.

Keep reading for what else these insights reveal about the trends shaping business strategy in the months ahead.

1. Companies Are Moving Forward in Today’s Regulatory Environment

Throughout 2025, the dominant response from public companies regarding legislative and regulatory changes was to seek guidance or hold steady. This year, following leadership changes at the U.S. Securities and Exchange Commission and the Public Company Accounting Oversight Board, the introduction of numerous policy proposals that would impact financial reporting and internal controls has moved many companies from holding steady to active engagement.

In response, audit partners identified a continued focus from public companies on guidance to navigate regulatory changes and related uncertainty. At the same time, they also observed increased investment and capital allocation – signaling a shift beyond a “wait and see” approach to one that positions companies for future growth. These decisions can give stakeholders clearer insight into management’s priorities and how companies are innovating in response to today’s changing landscape.

Audit partners’ economic outlook remains largely neutral compared with fall 2025. Although financial markets have shown strength in the first half of 2026, with the S&P 500 reaching record highs, ongoing uncertainty can be attributed to questions around how these policy proposals will shape the economy and how emerging technologies may introduce new risks.

2. AI Is Becoming a Core Business Priority

AI continues to dominate business conversations, and investment levels reflect that momentum. Goldman Sachs expects companies to spend $527 billion on AI in 2026. Audit partners see this investment firsthand, with AI and data analytics ranking among companies’ top strategic priorities for the first time since the survey began in 2022.

More telling is where adoption is expanding. Audit partners observe growth in applications across financial reporting, planning, and analysis, suggesting that AI is increasingly embedded in core business processes rather than operating as a standalone initiative. Our analysis of S&P 500 Form 10-Ks found a similar trend: A growing number of companies mention AI in the business, MD&A, and financial reporting sections.

Workforce strategies are evolving in response. Companies are more focused on upskilling their employees to build internal capabilities rather than relying on outside expertise to leverage the technology. We expect AI to remain a top trend and will continue to monitor how companies are integrating it across business functions.

3. Governance Is Adapting to Smooth Implementation

Companies face complex barriers when integrating AI into governance and internal control systems. Audit partners report that internal expertise is a key challenge for establishing AI governance, emphasizing the need for ongoing investment into training and talent as systems are integrated into corporate operations. They also cite documentation, explainability, accountability, and oversight of third-party tools as matters many companies are working to address.

These gaps become evident when audit partners are asked to describe the maturity of AI governance at their largest client. Only 6% of survey respondents say their largest client has advanced governance frameworks, while nearly half say their largest client is in the early stage of developing such structures to oversee AI use.

Governance plays a critical role in building trust and transparency around a company’s use of AI. Through their oversight responsibilities, audit committees can help establish governance frameworks that promote the responsible and effective use of the technology. Nearly one quarter of survey respondents indicated that the audit committee at their largest client has proactively raised conversations around the use of AI in company operations or financial reporting, signaling increased board-level attention to these issues.

The Bottom Line

Observations from audit partners reflect where companies are today and where they’re headed. Results from the Spring 2026 survey show organizations advancing with greater urgency, despite ongoing uncertainty around regulatory change, economic risks, and the long-term impact of AI. As businesses navigate this evolving landscape, balancing innovation with strong governance will be essential to sustaining trust in corporate decision-making and financial reporting.

Read the full Spring 2026 Audit Partner Pulse Survey and follow the CAQ on LinkedIn for more insights about U.S. capital markets.