CEOs see AI as the biggest business risk, exceeding geopolitical turmoil
CEOs see AI as the biggest business risk, exceeding geopolitical turmoil
Publish Date: 2026-02-26 16:20:00
Source Domain: www.cfodive.com
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AI Identified as Major Risk: For the first time, CEOs see artificial intelligence (AI) as the biggest risk to their industries, surpassing geopolitical turmoil, cyber intrusions, and financial instability, according to the Conference Board.
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Increased Capital Spending Plans: CEOs are planning to significantly boost capital spending to address AI threats, with this intention surging to 35% this quarter from 22% last quarter.
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Rising CEO Confidence: The share of CEOs expressing high confidence in the current quarter reached its highest level since Q1 2025, indicating restored optimism among large firm leaders.
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Dual Risks of AI Investment: CEOs face a critical decision regarding AI investments. Investing too little risks falling behind competitors, while excessive investment may lead to poor returns and missing earnings targets.
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Potential for Innovation and Disruption: AI promises to spark innovation and create new business opportunities, akin to the creative destruction described by economist Joseph Schumpeter.
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Concerns About Job Displacement: AI may lead to job displacement preceding job creation, potentially causing a rise in unemployment and a decline in workforce participation, creating hardship for many.
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Manufacturing Sector Impact: In manufacturing, AI could follow the path of past technological advancements, initially offering slower-than-expected returns, as highlighted by Fed Governor Michael Barr.
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Tariffs’ Impact on Companies: Seventy-one percent of CEOs reported that tariffs imposed by the Trump administration increased costs for their companies, with 44% either passing these costs onto customers or planning to do so.
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