Despite inflation, weak demand and global instability, CEOs are not retreating — but their definition of growth has fundamentally changed
Despite inflation, geopolitical instability, technological disruption and increasingly complex operating environments, business leaders across Australia and New Zealand remain “vigilantly optimistic” and are planning for “cautious growth under pressure”, according to the 2026 CEO Institute Survey report.
Now in its ninth year, the white paper detailing the survey results was launched by leading Australian-owned enterprise resource planning (ERP) and analytics software provider Pronto Software, in partnership with The CEO Institute. Based on insights from senior business leaders across Australia and New Zealand, the report reveals how CEOs are recalibrating strategy, reassessing risk and investing selectively to build resilience in an era where volatility has become structural.
While uncertainty is now the operating norm, the findings suggest leaders are not standing still. From AI and digital capability to supply chains, geopolitics and long-term planning, CEOs are increasingly treating disruption as a catalyst for more disciplined, future-ready decision-making.
Survey reveals top challenges confronting CEOs
The survey shows leaders are responding to a complex mix of economic, technological and geopolitical pressures, rather than a single dominant threat.
- Inflationary pressures remain the most pressing issue overall and are being felt most acutely in New Zealand.
- Consumer demand slowdown is also weighing heavily, with around one in five respondents expecting it to have the greatest impact on business performance in 2026.
- Technology disruption ranked as the third-most cited challenge, selected by 16% of Australian and 18% of New Zealand respondents, reflecting growing unease about the pace and consequences of AI, automation and cyber risk.
- Labour supply and skills shortages continue to feature prominently, particularly in Australia, where 15% of businesses nominated them 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 are also expected to have a material impact, cited by 13% of Australian and 10% of New Zealand
Layered over these domestic pressures is global instability, which is now top of mind for around one in 10 businesses across the region.
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AI, cyber attacks, technology and a new world disorder
Technology disruption is compounding geopolitical risk, with 13% of respondents identifying cyberattacks linked to state actors or geopolitical tensions as a top threat in 2026 – a figure Chad Gates, Managing Director of Pronto Software, believes may understate the true level of exposure.
“That number feels lower than it should be,” he says. “CEOs probably should be more concerned about state-sponsored cyber hacking – particularly around things like denial of service and knocking people off air.”
As volatility intensifies, many leaders are turning to AI to regain speed, visibility and control. The survey found 22% of Australian and 16% of New Zealand businesses plan to prioritise digital transformation and innovation in 2026.
However, Mr Gates cautions that many organisations are still unclear on what meaningful AI adoption looks like.
“Everybody thinks they need AI in their business,” he says, “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.”
Growth mindset under pressure
Despite these increasing pressures, the prevailing mood among ANZ CEOs is not one of despair, but ‘cautious growth under pressure.’ According to this year’s CEO Institute Survey report, 41% of Australian and 57% of New Zealand respondents are planning to grow and expand in 2026.
Richard Wynn, Chief Executive Officer of The CEO Institute, describes the leadership mindset as a blend of “vigilant optimism” and “measured realism.”
“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,” he says.
“Overall, the direction of travel is positive,” Mr Wynn says. “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.”
About the 2025 CEO Survey report
In its ninth year, the partnership between Pronto Software and The CEO Institute brings together fresh insight into how senior business leaders across Australia and New Zealand are preparing for 2026. Based on a survey of 798 senior business leaders across Australia and New Zealand CEOs, this whitepaper explores how organisations are balancing growth ambitions with heightened risk in an era defined by geopolitical uncertainty, supply chain disruption and rapid technological change.
The findings reveal a leadership mindset shaped by realism and resolve. While volatility has become the norm, CEOs are not standing still – they are recalibrating strategy, strengthening foundations and investing selectively to build resilience and optionality. From AI and digital capability to supply chains and long-term planning, this report captures how leaders are turning uncertainty into a catalyst for more disciplined, future-ready decision-making.
About Pronto Software
Pronto Software is an Australian developer of award-winning business management and analytics solutions. Pronto Xi, our ERP software, integrates accounting, operational and mobile features in a single system – optimising business processes and unlocking actionable insights. Over 1,500 organisations have leveraged our industry experience and innovation to increase growth and revenue.
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