39% of Mid-Market Firms Prioritize AI, 73% Face Labor Cost Pressures, CBIZ Reports
CBIZ's Mid-Market Pulse Report finds 39% of mid-market firms prioritizing digital and AI transformation, while 48% cite lack of internal expertise as the chief barrier. It also shows 73% face labor cost pressures and rates AI Adoption at 35, Cost Pressure at 42 and Regulatory Impact at 37.
1. Pulse Report Highlights
CBIZ surveyed over 500 mid-market business leaders and internal specialists to gauge growth ambitions and execution challenges. The report underscores resilience and growth focus, balanced against rising costs, workforce constraints and economic uncertainty in the current environment.
2. AI and Talent Barriers
Digital and AI transformation is now a top priority for 39% of organizations, yet 48% identify lack of internal expertise as the primary obstacle. Additionally, 44% cite talent and skills gaps as their leading execution barrier, highlighting workforce readiness issues.
3. Cost and Regulatory Pressures
Labor costs impact 73% of firms, while 68% report strain from technology investments and 61% from healthcare expenses. The Regulatory Impact Index stands at 37 on a 100-point scale, indicating a consistent but manageable compliance burden across the mid-market.
4. Performance Indices and New Solutions
CBIZ introduced three Mid-Market Performance Indices—AI Adoption (35), Cost Pressure (42) and Regulatory Impact (37)—to benchmark operating conditions. In response, the firm launched Insights. Applied., a solution suite helping clients convert data into coordinated action across operations, tax strategy and technology.