BMO Outlook: U.S. Businesses Shift to AI Execution and Capital Discipline in 2026

US companies are prioritizing AI driven productivity and margin protection in 2026 as economic conditions stabilize according to the latest BMO report.

By: AXL Media

Published: Mar 18, 2026, 7:27 AM EDT

Source: Information for this report was sourced from BMO US via PR Newswire

The 2026 Shift from Experimentation to AI Productivity

According to the BMO Business Outlook released March 18, 2026, the current year marks a turning point for corporate technology. Companies are moving beyond initial AI pilots and focusing on real world applications that streamline operations. Tony Sciarrino, Head of BMO Commercial Bank US, noted that the winners in the current market are not those taking the most risk but those using technology to measurably improve output while protecting their balance sheets.

National Economic Outlook and Thawing Markets

BMO Chief US Economist Scott Anderson points to AI driven investment as a major tailwind for the national economy. However, he warns that risks involving geopolitics and trade remain elevated. The report highlights an uneven thawing of capital markets where loan demand is improving as previous interest rate cuts circulate through the system. M&A activity is rising selectively, with a preference for bolt on acquisitions that add immediate scale or capabilities. Furthermore, underwriting remains disciplined as banks and firms prioritize high quality assets.

Regional Highlights in Manufacturing and Infrastructure

The report provides a granular look at how different US regions are navigating the 2026 landscape. In the Midwest, strength is found in food manufacturing and the expanding data center ecosystem. Indiana stands out for its durable pharmaceutical and chemical production base, while other states focus on automation to combat structural labor shortages. In the West, Northern California continues to lead in AI infrastructure spending. In Arizona, the focus has shifted from rapid post pandemic expansion to a measured phase emphasizing semiconductors and advanced manufacturing. Within the South, Texas remains a primary growth engine driven by in migration. Georgia is seeing a surge in data center activity, though some softness has appeared in white collar labor roles.