Senior UK & US communicators expect bigger budgets by 2026

A new report has found that despite prevailing economic uncertainty, senior communications professionals in the UK and US expect increased budgets and greater influence within their organisations by 2026.

The research, titled 'The Voice of the Chief Communications Officer', was conducted by Fire on the Hill in association with Mercury Analytics. It provides insight into the challenges and priorities facing over 200 senior in-house communications leaders, with its findings reflecting the growing complexity for businesses amid geopolitical, technological and societal changes.

Rising budgets and influence

The study found that 80% of in-house communications professionals anticipate a rise in their organisation's PR or communications budget in 2026. Notably, 8% of respondents expect budget increases of more than 50%, while 26% foresee rises between 11% and 25%.

Only a small proportion, 3%, expect their budgets to decrease. In contrast to budget tightening seen in other business functions, communications appears poised for greater investment in the near future.

Senior professionals also report an expansion in their strategic roles. More than nine in ten describe themselves as guardians of their company's corporate purpose and values, with a focus on ensuring organisations fulfil their stated missions.

Changing roles at the leadership level

According to the research, 77% of participants indicated that communications has long been represented at their organisation's leadership table. A significant proportion, 20% of US and 15% of UK respondents, noted that this representation at the highest decision-making level is a more recent development when considering the last five years. Small minorities (1% in the US and 3% in the UK) believe that leadership-level representation of communications will arrive soon.

Communications strategies are being reviewed more frequently amid ongoing economic volatility. In the US, 60% of respondents reported updating strategy more often compared with the past, with this figure rising to 66% among UK professionals.

The impact of recent US tariff adjustments was largely described as marginal by participants, and there was limited support among those polled for increased trade levies.

Technological change and AI uptake

Technology, and in particular artificial intelligence (AI), was highlighted as a key area of focus. AI was cited by 24% of those surveyed as the most significant issue facing their organisations in the coming year.

There is substantial optimism towards AI within the profession. The majority, or 82%, reported a 'very positive' or 'somewhat positive' view of AI's future. A further 11% were neutral, with a small number expressing a negative outlook.

Use of AI is already prevalent, with 27% of senior communications professionals indicating AI is 'fully integrated' into their workflows. Additionally, 28% are piloting AI tools and 32% are exploring prospective use cases. Only 12% said their organisations are not currently utilising AI or automation in communications functions.

The primary benefits expected from AI relate to efficiency. Among anticipated impacts, respondents selected 'faster response times/efficiency' (24%) and 'faster analysis' (18%). Some 12% also expect AI to contribute to increased creativity within communications teams.

Shifting agendas: sustainability and DEI

Sustainability remains a prominent area of focus, ranking among the top four issues for communications leaders. However, the report identifies that Diversity, Equity, and Inclusion (DEI) initiatives have slipped down the agenda. Just 2% of respondents selected DEI as the most pressing issue, with many organisations seeing it as separate from broader sustainability efforts.

Challenges remain amid confidence

Despite the confidence in growing budgets and influence, communications leaders recognise a challenging environment. Economic uncertainty was cited by 14% and budget constraints by 12% as significant issues for business this year.

"As the commercial landscape becomes harder to navigate, communications leaders are gaining influence within their organisations. These professionals are driving strategic value by exerting influence on organisational decision-making, embracing technologies like AI, safeguarding corporate purpose and values and aligning communications with corporate goals. It is clear that senior communicators are instrumental in bridging the strategic priorities of their organisation with the fast-changing market environment. And when times are uncertain this can be the difference between the success or failure of a brand."

That was the view of Christopher Clarke, Co-Founder at Fire on the Hill.

"Our research into changing the communications landscape has revealed some of the new and innovative ways in which professionals in this space are responding. What we saw was a shift toward decisive action: investing in AI, increasing budgets, and reworking processes to move faster. This type of research is key to supporting our clients identify the opportunities for growth and adaptation, by identifying the drivers of change to their businesses and organisations."

Ron Howard, Chief Executive of Mercury Analytics, gave this assessment of the findings.

The research drew on responses from 201 senior in-house communications leaders, with roughly equal representation from the UK and the US. Participants were employed full-time with significant input into communications strategy, and 86% reported holding final authority in this area. The sample included professionals with a range of experience, both majority in-house and blended with agency backgrounds.