Australian CEOs are feeling optimistic about the year ahead, with 58% expecting economic growth (up from 35% last year) and 70% believing their businesses will remain viable for more than 10 years. However, this confidence comes with a significant tension: transforming fast enough to keep up with technological change, including AI, is their number one concern.

1. Optimism is rising, but execution lags behind. While 49% of Australian CEOs are confident in revenue growth, only 14% report revenue gains from AI—well below the global average of 30%. This gap likely stems from insufficient investment, with only 28% believing their current AI spending is enough to deliver on their goals.
2. Short-term pressures are crowding out long-term reinvention. Australian CEOs spend just one day every fortnight on long-term strategic issues such as new revenue streams and business model transformation, compared to one day in six for their global peers.
3. Innovation capability needs strengthening. While 44% of Australian CEOs say innovation is central to their business strategy, only 31% believe their company's innovation capability is adequate for an uncertain future. Organisations that close this gap achieve 2.1 times greater revenue from new products and services.
4. Australian companies are venturing into new sectors. Almost half (47%) of Australian CEOs report competing in new sectors or industries, up significantly from 30% last year and ahead of the global average of 42%.
5. Investment patterns remain anchored to traditional markets. Despite Asia-Pacific's $4.7 trillion growth opportunity, Australia's top investment destinations remain English-speaking Western markets. Only 14% plan to invest in mainland China.
6. Cyber risks top the threat list. Cybersecurity is viewed as the number one threat for the coming twelve months, with 44% of CEOs improving defences against attacks and 62% boosting cyber risk management in response to geopolitical volatility.

• Use scenario planning to make smart, no-regrets investments
• Prioritise capability building from within
• Strengthen innovation execution and delivery muscle
• Build AI-first infrastructure and start small, high-value pilots
• Build AI trust through action, not intention

Download the full report: PwC's 29th Global CEO Survey – Australian Insights