AI, cyber & inflation top concerns for Australasian CEOs

A survey of senior business leaders across Australia and New Zealand has found that artificial intelligence and technology disruption now sit among the leading concerns for chief executives, alongside inflation, weak consumer demand and geopolitical instability.

The 2026 CEO Institute Survey report drew on responses from 798 senior business leaders across Australia and New Zealand. The CEO Institute produced the report with Pronto Software.

The findings point to a mixed operating outlook. Inflationary pressure ranked as the top issue overall. The report said the impact appeared most acute in New Zealand.

Weak demand also featured heavily. Around one in five respondents said a slowdown in consumer demand would have the greatest impact on business performance in 2026.

Technology risks

Technology disruption ranked as the third most cited challenge. It was selected by 16% of Australian respondents and 18% of New Zealand respondents. The survey linked these concerns to AI, automation and cyber risk.

Cybersecurity also emerged as a distinct risk category. The survey found 13% of respondents identified cyberattacks linked to state actors or geopolitical tensions as a top threat in 2026.

Chad Gates, Managing Director, Pronto Software, said the survey result may not reflect the scale of the issue.

"That number feels lower than it should be," said Chad Gates, Managing Director, Pronto Software.

Gates added: "CEOs probably should be more concerned about state-sponsored cyber hacking - particularly around things like denial of service and knocking people off air," said Gates.

The survey results place cyber risk within a wider set of issues linked to geopolitical tensions. It said global instability now sits top of mind for around one in 10 businesses across the region.

Digital priorities

The report also captured a continued push for digital investment. It found 22% of Australian businesses and 16% of New Zealand businesses plan to prioritise digital transformation and innovation in 2026.

Gates said many organisations still lack clarity on how to approach AI adoption.

"Everybody thinks they need AI in their business," said Gates.

He added: "but they don't always know what that really means or how to get the best out of it. AI represents endless possibility, endless opportunity, and endless fear of missing out. But there is also growing concern around security and AI deepfakes - because as technology accelerates, so does the cyber-security arms race," said Gates.

Jobs and rules

Labour supply and skills shortages remained a significant external issue, particularly in Australia. The survey found 15% of Australian businesses nominated labour and skills as the external issue most likely to affect performance over the next 12 months, compared with 8% in New Zealand.

Regulatory reform and policy change also featured as a concern for business planning. It was cited by 13% of Australian businesses and 10% of New Zealand businesses as likely to have a material impact.

The survey framed these pressures as layered. It did not identify a single dominant threat. It described a business environment shaped by economic pressure, shifting technology and geopolitical uncertainty.

Growth outlook

Despite the list of concerns, many leaders still plan expansion. The report said 41% of Australian respondents and 57% of New Zealand respondents are planning to grow and expand in 2026.

Richard Wynn, Chief Executive Officer, The CEO Institute, described the prevailing mindset.

"CEOs can see opportunities on the horizon, but they are very conscious of the constraints and shocks that could hit them from both the domestic economy and the geopolitical environment," said Richard Wynn, Chief Executive Officer, The CEO Institute.

Wynn said the shift has implications for governance and risk management discussions at board level. He pointed to a stronger focus on issues such as supply chains and exposure to external shocks.

"Overall, the direction of travel is positive," said Wynn.

He added: "More Boards are asking the right questions about exposure, alliances, supply chains and regional strategy. The next step is to turn those questions into standing agenda items, clear risk appetite statements and concrete structural decisions, rather than occasional conversations when a crisis flares," said Wynn.

Pronto Software develops ERP and analytics software. Its Pronto Xi product integrates accounting, operational and mobile features in a single system.

The survey report said leaders across Australia and New Zealand are recalibrating strategy and reassessing risk while they pursue growth plans in a volatile environment.