KPMG Summer Road Trip: Insights and Trends from Boston to San Francisco

In this month's edition, we’re taking a road trip across the country to hear from several KPMG office managing partners. John, Yessi, David, Travis, and Chris share a glimpse of how they are spending their summers across five major U.S. cities: Boston, New York, Atlanta, Chicago and San Francisco.

They also dive into findings from our recent KPMG American Perspectives Survey, which explores how people are navigating compound volatility — the short and long-term disruptions shaping their economic and consumer experiences. These insights help business leaders in banking, energy, autos, healthcare, and technology understand how they can better serve their customers.

The bottom line: Overall, people are optimistic about their personal financial outlook, but slightly pessimistic about their outlook for the U.S. economy. However, New Yorkers and residents of the Bay Area are optimistic about both their own finances and the U.S. economy.

Across all cities, we see several tensions. For example, people want more generative AI, or GenAI, across their consumer experiences such as banking and government services, but also need to build trust in the technology.

Let’s dive into each city, led by our office managing partners:

Bostonians: Financial Optimism and Digital Opportunities Grow as Concerns with Trust Linger

Hello from your Boston Office Managing Partner, John Capone . Now that we’re heading into July, I am looking forward to our company-wide shut down over the July 4th week to reconnect with family and friends and enjoy the summer weather (which is often short-lived in Boston)! 

We’ve also had exciting events in our office like our recent Generative AI Executive Accelerator program, which brought together industry leaders who explored the ways companies should be thinking about responsible development, implementation, and value creation through AI.

Technology is making its mark across the city, with almost 40% of respondents stating that GenAI is affecting their day-to-day lives. Concerns regarding trust in the usage of GenAI remain high with worries that the technology could be used to sway public opinion regarding important decisions.

Attitudes towards integrating GenAI across different industries vary, but all underscore the importance of building trust with stakeholders on AI. Looking at the banking sector, nearly half of customers felt comfortable with GenAI providing advice related to credit cards, but less felt comfortable with advice related to retirement and mortgages. In the healthcare sector, people worry about the lack of human interaction, empathy, reliability, and accuracy of GenAI. However, they acknowledge the potential of its benefits including having the ability to schedule appointments, ask questions, and refill prescriptions virtually. 

We also found that optimism toward personal finances is on the rise for the residents of Boston, with nearly half of folks feeling positive about their own financial situation though lacking confidence in the growth of the broader U.S. economy.

Overall, Boston residents are navigating an environment of personal financial optimism, technological innovation and evolving consumer habits. By understanding these nuances, our team at KPMG can support both our clients, our people and the surrounding community.

New Yorkers: Confident in the Economy and Embracing AI

Greetings from The Big Apple! Yesenia Scheker Izquierdo here, KPMG New York office managing partner. I am so excited to finally kick off summer. New York City is filled with fun activities like festivals, pop-ups, outdoor concerts, and more — after all, they don’t call it the city that never sleeps for nothing!

Next month, I am looking forward to joining my colleagues to kick off the commencement of construction at our new KPMG U.S. headquarters at Two Manhattan West. We will gather for an evening of celebration, and a chance to learn more about our new location and neighborhood.

I am also pleased to share insights from our recent survey, which reveals New Yorkers stand out for their optimism about their personal finances and the U.S. economy, despite national trends.

New Yorkers are also at the forefront of embracing technology to enhance their daily experiences with 51% using GenAI both at home and professionally — a rate significantly higher than the national average. This trend underscores the city's forward-thinking mindset and readiness for a tech-empowered future.

Most New Yorkers think GenAI could be a game changer to enhance government experiences, like DMV services and healthcare benefits, and are open to leveraging GenAI to guide their financial decisions, particularly budgeting advice and credit card choices.

Atlantans: Financially Optimistic, But Prudent Shoppers

Greetings from the ATL! I’m David Leiter , KPMG office managing partner in Atlanta. As the beating heart of the South, the city is a cultural capital, commercial hub and a hotbed of research, tech, and music. There is no shortage of summer fun in Atlanta, from Braves games at Truist Park to the many music, food and art festivals hosted across the city.

At KPMG, along with having some summer fun, we believe in working together, for better. Accordingly, I’m very much looking forward to spending some time in early August volunteering with the Westside Future Fund, a nonprofit organization that aims to revitalize the historic Westside neighborhoods of Atlanta, for a park cleanup project. I’m excited to join other KPMG volunteers in removing trash, debris, and invasive plants from the greenspace, as well as planting new trees and flowers. This project will not only beautify the area, but also contribute to a safer and healthier environment for residents and visitors.

Today, Atlantans are hopeful when it comes to their personal finances. Over half — 52% to be exact — feel good about their financial situation in the coming year.  But when we look at the bigger picture, the U.S. economy, that optimism dips. Almost 40% aren't feeling too confident about the country's economic growth prospects.

In terms of adapting to change, Atlantans are savvy shoppers. A third are planning to do more in-person shopping this year, and over two-thirds, 70%, are eager to hunt for bargains. Atlantans are also seeing GenAI popping up more often in their daily lives and are keen for the government to use it to spruce up services like the DMV and healthcare benefits, more so than the national average.

Additionally, people in Atlanta are thinking green. When it comes to powering their homes, 60% are more comfortable with renewable energy sources over fossil fuels.

Chicagoans: Budget Conscious, AI Ready

Hello from the Windy City! I’m Travis C. Hunter, Jr., KPMG’s office managing partner in Chicago. There’s nothing quite like summer in Chicago. With a calendar full of sporting events and festivals, it's the city’s way of saying sorry for the winter.

Of course, Chicagoans work hard too. Earlier this month, I hosted clients and partners at our DEI Week, which included culture chats, diversity workshops, and an outing to the legendary Buddy Guy’s blues club. Last month, I hosted business leaders at the Executives' Club of Chicago AI Summit, discussing how to implement GenAI at scale in an enterprise.

Like people in Boston, Chicagoans are more optimistic about their personal finances than the growth of the U.S. economy. However, they’re less optimistic than the national average —particularly when it comes to disposable income for things like festivals and dining al fresco.

Chicagoans think more critically about their budgets, and their expectations for increased GenAI experiences with their banks stand out. With that said, they are less comfortable leveraging GenAI for mortgage and investment advice.

These expectations align with their personal experiences: 40% of Chicagoans report GenAI is already having at least somewhat of an impact on their day-to-day life, and a third of people are already using it as a substitute for search engines. However, 73% of people agree that GenAI poses a threat to the credibility of online information.

Chicago is a city of doers, and the survey findings underscore the can-do attitude and innovative spirit of Chicagoans.

Bay Area Residents: Unwavering Financial Optimism

Greetings from San Francisco, I'm Chris Cimino, KPMG San Francisco office managing partner. Summer is in full swing, and it's been an exhilarating time for our region! I always enjoy this time of year. We have incredible parks and museums, and innovative tech companies in our backyard.

We kicked off summer by hosting our Urban Picnic and brought together several hundred employees for an afternoon of fun and festivities. And last month, I welcomed clients for a packed GenAI event to explore the technology’s transformative impact on the economy and our daily lives. We discussed the importance of establishing guardrails to enable trust and how GenAI can create value and drive sustainable growth.

I'm thrilled to share a few local perspectives from the survey, which highlights the financial optimism of Bay Area residents, like the optimism of New Yorkers. Over half, 55%, of Bay Area residents feel positive about their personal finances for the coming year, and 37% express optimism about U.S. economic growth.

People in the Bay Area are also excited about integrating GenAI into their everyday experiences, especially in the healthcare sector. Over half, 55%, believe GenAI would provide helpful responses to questions they have for their healthcare provider, and 48% think it would streamline administrative tasks in healthcare. But like with any new tech, there are trust issues, especially around privacy and security. In our survey, over a third of Bay Area residents report that GenAI is already impacting their lives and expect it to become a bigger part of their consumer experience.

These findings underscore the resilience and forward-thinking nature of our region. As we navigate the evolving business landscape, KPMG remains committed to supporting our clients and community in harnessing opportunities and addressing challenges.

In the News

• Citing findings from the inaugural KPMG American Perspectives Consumer Survey, KPMG US Products Line of Business Leader Matt Kramer joined Yahoo Finance’s Wealth! to shares insights about steady wages, value-driven spending, and Gen Z's shopping habits.
• KPMG Chief Economist Diane Swonk has published a top 10 list of structural shifts underway and how they are likely to affect the course of the economy. She explains how most of the structural shifts have left us with a higher level of uncertainty about the future and made the economy more susceptible to shocks and bouts of inflation
• In CFO Dive , Matt Kramer linked the optimism in their personal finance prospects to confidence in navigating economic forces like AI and digitalization. The survey also revealed a contrast with 87% of CEOs expressing optimism about the economy.
• In Fortune , Matt Kramer, attributes the paradox of Americans' personal financial optimism and economic pessimism to the complexity of current economic cycles, the impact of AI on the job market, and ongoing concerns about inflation and high interest rates.
• In its coverage of the American Perspectives Survey, Reuters revealed that despite equal pricing and features, Americans still prefer standard gas vehicles over hybrid or electric vehicles, with only one-fifth of respondents opting for an EV.

Make The Difference

Compound volatility is presenting unique challenges with implications across sectors for both businesses and individuals. Our 6/13 LinkedIn Live event featured KPMG US Sector Leaders Matt Kramer, Kristin Pothier and Angie (Evans) Gildea, who offered their perspectives on how to navigate this period of economic disruption.

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