AI Critical Concern For CEOs, New Survey Reveals

Why It Matters

The findings highlight that executive focus is shifting toward resilient, technology‑driven growth, signalling increased investment in AI and risk management across the ANZ region.

Key Takeaways

• Inflation remains top concern, especially in New Zealand.
• AI adoption plans rise, but clarity lacking.
• Cyber‑state attacks perceived under‑reported by CEOs.
• 41% Australian, 57% NZ CEOs aim to grow in 2026.
• Labour skill shortages top risk for Australian firms.

Pulse Analysis

The latest CEO Institute Survey underscores a paradox in the ANZ business climate: macro‑economic headwinds coexist with a determined growth agenda. Inflationary pressure, especially acute in New Zealand, tops the risk matrix, while consumer demand slowdown follows closely. CEOs are recalibrating capital allocation, favouring projects that enhance operational visibility and agility. This strategic shift is evident in the 22% of Australian and 16% of New Zealand firms earmarking digital transformation and AI initiatives for 2026, despite lingering uncertainty about practical implementation.

Technology disruption emerges as a double‑edged sword. While AI promises efficiency gains and new revenue streams, executives express trepidation over security, deep‑fake threats, and the broader cyber‑risk landscape. The survey reveals that 13% of respondents flag state‑sponsored cyber attacks as a top concern—figures that industry leaders believe underestimate the true exposure. Consequently, boards are tightening governance around AI ethics, data protection, and incident response, seeking to balance innovation with robust risk controls.

Labor market dynamics and regulatory shifts round out the risk profile. Skill shortages, particularly in Australia, rank among the highest external challenges, compelling CEOs to invest in upskilling and talent pipelines. Meanwhile, evolving policy environments demand proactive compliance strategies. The combined pressure of these factors drives a cautious‑growth mindset: 41% of Australian and 57% of New Zealand CEOs plan expansion, but only after embedding resilience into supply chains, digital capabilities, and strategic risk frameworks. This nuanced approach signals a broader regional trend toward disciplined, future‑ready leadership.