I used Plain-jane Illustrator, no plug-ins, and created simple rectangles, scaled and placed with smart guides on for snapping, placed an alternating row of them, then made both the alternating rows a symbol.
I used the direct selection (white arrow) tool to select all the outer edge anchor nodes, and pulled them back the correct amount to get this effect.
No tricks, no filters. Simple.
I only took it a small distance - you can keep going till the chevrons are very small, and you'll get materially the same effect as the example image.