Aussie execs feel pressure of AI rollouts more than global peers

Artificial intelligence continues to be a significant challenge for those in the C-suite.

Australian leaders are struggling to keep up with global AI rollouts. Consultancy firm Argon & Co has revealed that 50 per cent of national operations leaders reported technological change was the biggest business challenge in 2025, compared to 34 per cent in Canada, 38 per cent in the UK, and 43 per cent in the US.

The new findings also found that AI and automation was also a main part of cost-reduction strategy – but with a continued skills shortage nationally, operational resilience is suffering. Only 16 per cent of Australian executives reported a significant use of AI for supply chains over the last year.

The global average is more than 10 per cent higher.

As to why, 38 per cent reported people capability as a barrier to building operational resilience, and 35 per cent blamed budgetary and resource constraints. Interestingly, some believe the “strain of technological change” is connected to higher budgets. Paul Eastwood, partner ANZ at Argon & Co, said: “Greater investment often brings greater complexity, and legacy systems or data quality issues can quickly become bottlenecks.”

With skills shortages remaining an issue, it is no surprise that supply chains remain a key focus of business resilience efforts. Fifty per cent of surveyed Australian leaders indicated AI was most successfully deployed in operations and supply chain.

Overall, C-suite leaders are increasingly and more consistently turning to technology to increase efficiency, long-term growth, and resilience building. In Australia, 43 per cent of leaders are establishing contingency plans, 40 per cent report efforts to improve collaboration with supply partners, and 39 per cent are aiming to improve supply chain transparency.

Eastwood supports internal reviews that can safeguard the future, stating: “To stay ahead, businesses need a clear view of where their operations are most exposed and how different disruption scenarios could play out.” It is no surprise, then, that many Australians felt the National AI Plan – which focuses on capability, adoption, and regulation – couldn’t come fast enough.

What’s more, C-suite leaders are increasingly relying on advanced digital tools, with almost half agreeing that digital twins and predictive analytics provide the greatest opportunity for increased resilience in manufacturing and logistics.

There is a long way to go, but many seem enthusiastic about seeing change – while only 16 per cent of Australian leaders were “very satisfied” with the effect of AI on their organisation, about half the global rate, 81 per cent held a favourable view of the technology.

However, the issue remains complex, given that AI is both part of the problem – in relation to skills and implementation – and the solution – efficiency and global cooperation. The key, according to Eastwood, is to recognise the risks before they present significant issues. He said: “Businesses need a clear view of where their operations are most exposed and how different disruption scenarios could play out.”

“The strongest results come from a cross-functional approach – aligning people, processes, and technology – so organisations can respond faster and more effectively when conditions change.”

It is clear that the countries and companies willing to commit to long-term solutions will be best suited to weather an AI-ingrained future.