Artificial intelligence (AI) is now the leading concern for U.S. business executives, ahead of economic challenges, according to a new pulse survey from Vistra.
The study reveals a shift in business priorities, with half (50%) now ranking AI implementation as their top business risk, surpassing traditional concerns such as an economic slowdown (48%) and supply chain disruption (43%).
“AI has shifted from being a promising innovation to a defining factor in competitiveness. Despite the mounting compliance and data risks it brings, businesses now see falling behind in AI as a greater threat than an economic slowdown or regulatory change,” says Jim Lee, EVP, Americas, at Vistra.
“Cross-border flexibility has become vital to competitiveness. Businesses are rethinking their global footprints to not only build supply chain resilience, but often more importantly, tap into new talent and growth markets. The shift towards regions like Latin America highlights a broader push for staff diversification, both as a safeguard and a source of new opportunity. Firms that can shift people, capital, and operations efficiently are best placed to navigate economic volatility and capture long-term growth,” adds Saul Howerton, VP and global head of people advisory at Vistra.
Key takeaways:
· Among leaders already utilizing third-party AI systems, nearly half (49%) surveyed identify data security as their most urgent risk, and 55% cite data protection as their biggest compliance concern. One respondent commented, “AI can be really helpful for improving business efficiency and decision-making, but companies need to be careful about data privacy and make sure the technology is used responsibly.”
· Despite these risks, market uncertainty is propelling companies to act quickly, with 66% of respondents reporting that market volatility is accelerating investment decisions, with more than one-third describing the pace as “significant.” Technology and digital transformation are the number one investment priority for 84% of respondents, showing that businesses are pushing ahead with AI adoption even as they recognize its risks.
· Nearly half (45%) of executives surveyed say they would leave their company if it lags significantly behind in AI adoption, and another 30% admit that falling behind would affect their long-term loyalty. As one respondent put it, “AI and digital transformation will define competitiveness; policy clarity and skilled talent are crucial drivers.”
· The vast majority (72%) of respondents report using AI for strategic decision-making, while just 1% say their companies have not yet adopted AI. The top AI use cases among respondents include cybersecurity threat detection (73%), supply chain risk management (69%), and automated regulatory compliance (67%).
· Looking forward, 85% of respondents identify AI implementation as a primary driver of growth over the next three years.
· Nearly six in 10 leaders (59%) are redirecting supply chains to Latin America, making it the top alternative to China, with Southeast Asia (57%) close behind. Meanwhile, EMEA lags significantly at 22%, highlighting a decisive move in global sourcing strategies.
· On the policy front, regulatory shifts, including ESG, financial regulations, and new AI rules were reported as the top concern for 28% of executives surveyed, edging ahead of issues like tariffs and trade policies (27%). However, ongoing uncertainty over tariffs and trade continues to weigh on employment strategy, with 32% saying they’ve frozen hiring and are actively reducing employee headcount.
