PwC Australia’s CEO Survey: Confidence surges, AI delivery gap emerges

Tuesday, 20 January 2026

Australian CEO confidence in economic growth has surged to 58 per cent – up from 35 per cent last year – bucking a global trend where confidence has fallen, according to PwC's 29th Global CEO Survey released today at the World Economic Forum in Davos.

While 49 per cent of Australian CEOs are very or extremely confident about revenue growth over the next 12 months (compared to just 30 per cent globally), the research reveals a critical gap between optimism and investment. 

The survey of 4,454 CEOs globally, including 108 in Australia, found that transforming fast enough to keep up with technological change is the number one concern for the majority of Australian CEOs, but most agree more could be done to invest in emerging technologies, especially AI. 

PwC Australia CEO Kevin Burrowes said: "Australian CEOs are seeing opportunity while the world pulls back, and there is an awareness that their investment levels need to match their optimism. Doubling down on AI, and making no-regret choices, will help CEOs realise the gains their global counterparts are reporting, such as revenue windfalls and expansion into new markets or sectors.” 

AI investment lags despite transformation urgency 

Despite 67 per cent planning to invest in emerging technology in the next 12 months, only 28 per cent of Australian CEOs believe their current AI investment levels are sufficient to deliver their goals – below the global average of 40 per cent.

In addition, there is a talent gap, with 28 per cent able to attract high-quality AI talent compared to 42 per cent globally. This translates into only 14 per cent of Australian companies seeing revenue gains from AI versus 30 per cent globally.

"The AI opportunity is massive, but Australia risks falling behind on execution," Mr Burrowes said.

"Companies that made serious AI investments two years ago are now seeing outsized returns. Those waiting for perfect conditions risk being left behind by more decisive competitors.

“Most importantly, those who see AI as a growth engine can focus freed resources on revenue generating initiatives, such as innovation, customer relationships and strategic thinking, which in turn increase their competitive advantage.”

Trust in AI is improving, with 37 per cent of Australian CEOs now expressing high confidence in AI, up from 31 per cent last year. 

Sector expansion accelerates as M&A appetite remains strong

Nearly half (47 per cent) of Australian CEOs report competing in new sectors over the past five years – up from 30 per cent last year and ahead of the global average of 42 per cent. Industrials and services (39 per cent), financial services (33 per cent), and technology sectors (32 per cent) are the primary targets.

Meanwhile, 52 per cent are planning major acquisitions worth more than 10 per cent of company assets in the next three years, with 27 per cent seeking acquisitions outside their core sector.

"We're seeing Australian companies broaden their horizons as industry boundaries blur," Mr Burrowes said. "The most successful are using M&A not just for scale, but as a catalyst for transformation – acquiring capabilities they can't build fast enough organically."

Australian companies poised to capitalise on Asia-Pacific growth surge

With Asia-Pacific emerging as the biggest driver of global growth – contributing around 60 per cent this year and next with almost $4.7 trillion in value on the table – Australian companies are well-positioned to expand their regional footprint from a strong domestic base.

While current international investment preferences favour established markets like the US (49 per cent), UK (31 per cent) and New Zealand (29 per cent), investment interest in mainland China has grown from 11 to 14 per cent, and there are growing opportunities in emerging economies across the Asia Pacific region.

Investment flows are showing positive momentum, with Japanese investment interest in Australia surging from two to nine per cent year-on-year, suggesting Australia's appeal as an investment destination.

"Australian companies are already proving they can successfully expand into new sectors – 47 per cent have entered new industries in the past five years," Mr Burrowes said. 

"This proven ability to diversify, combined with our geographic advantage and strong trade relationships, positions us perfectly to capture the massive growth opportunity in our own region. The companies that make this leap will build the market knowledge and relationships that create lasting competitive advantages."

The 2026 CEO Survey Australian findings can be viewed here.

About PwC's 2026 Global CEO Survey: PwC surveyed 4,454 CEOs in 95 countries and territories, including 108 Australian CEOs, from 30 September through 10 November 2025. The global and regional figures are weighted proportionally to country nominal GDP. To learn more about the findings, visit: www.pwc.com.au/ceosurvey